Mumbai, May 22 (IANS): The central government has launched an offer for sale (OFS) to divest up to 8 per cent of its equity in Central Bank of India, with the process opening for non-retail investors on Friday even as the bank’s shares edged up 0.29 per cent in early trade. The divestment, announced by DIPAM Secretary Arunish Chawla, involves an initial stake sale of 4 per cent – amounting to over 36.2 crore equity shares – with an additional 4 per cent available as a green shoe option, exercisable depending on investor appetite. The floor price has been set at Rs 31 per share, representing a discount of over 8.5 per cent to the stock’s Thursday closing price, and if the oversubscription option is fully utilised, the total transaction could be valued at approximately Rs 2,455 crore. Retail investors and bank employees will get their window to participate on May 25, 2026, with bidding open on both days from 9:15 am to 3:30 pm, keeping the process structured and time-bound across the two trading sessions.
The offer comes with clearly defined allocation rules designed to ensure broad-based participation across investor categories. A minimum of 25 per cent of the shares set aside for non-retail investors must be allocated to mutual funds and insurance companies, provided valid bids are received at or above the floor price, ensuring institutional participation remains a cornerstone of the transaction. Retail investors have been guaranteed at least 10 per cent of the total OFS shares, while 75 lakh equity shares have been specifically earmarked for eligible bank employees, who may apply for shares worth up to Rs 5 lakh and also retain the option to bid in the retail category within prescribed limits. Employee eligibility will be established using PAN details furnished by the bank to stock exchanges one trading day before the OFS window opens, ensuring a transparent verification process. Non-retail investors also retain the flexibility to carry forward any unallotted bids to the next trading day, adding a degree of convenience to what is shaping up to be a closely watched government divestment exercise.