Government to sell up to 8% stake in Central Bank of India via OFS today at a floor price of Rs 31
Sarthak Kumar
The Government of India has launched an Offer for Sale (OFS) in Central Bank of India, proposing to sell up to 4% stake in the public sector lender with an option to additionally divest another 4% in case of oversubscription. The floor price for the OFS has been fixed at ₹31 per equity share.
According to the offer document, the President of India, acting through the Department of Financial Services under the Ministry of Finance, will initially sell 36.2 crore equity shares, representing 4% of the bank’s total issued and paid-up equity share capital. An additional oversubscription option of another 36.2 crore shares may also be exercised, taking the total potential divestment to 8%.
The OFS will open for non-retail investors on May 22, 2026, while retail investors and eligible employees can bid on May 25, 2026. The government has reserved 10% of the offer for retail investors and 75 lakh shares for eligible employees.
Goldman Sachs (India) Securities Pvt Ltd has been appointed as the broker for the transaction.
Central Bank of India currently has the government holding well above 90% — one of the highest promoter concentrations among listed public sector banks. SEBI’s minimum public shareholding mandate of 25% applies to all listed companies, including PSU banks, with a compliance deadline set for August 2026.
This OFS is therefore not merely a divestment play — it is a regulatory necessity. Even with full 8% exercise, government holding will still remain far above the 75% threshold, meaning further dilutions are highly likely before August.
The transaction also forms part of the Centre’s aggressive FY27 divestment programme. Union Budget 2026-27 had set a disinvestment target of ₹80,000 crore, more than double the revised FY26 estimate.
Meanwhile, the proposed strategic privatisation of IDBI Bank has reportedly faced hurdles after financial bids from two prospective buyers fell short of the government’s reserve valuation. The government is now expected to evaluate alternative routes, including further OFS-based stake dilution, to increase public float before pursuing strategic stake sales.
The OFS document stated that bids will be accepted through a separate designated window of BSE and NSE during trading hours. The shares offered under the sale are fully paid-up equity shares with a face value of ₹10 each.
Disclaimer: This article is based on the Offer for Sale document filed with stock exchanges and publicly available information. Investors are advised to consult certified financial advisors before making investment decisions.