The Government of India has decided to exercise the oversubscription option in the ongoing offer for sale (OFS) of Central Bank of India, raising the total issue size from 4% to 8% of the bank’s equity capital amid strong investor interest.
The issue was subscribed 2.36 times receiving share bids of 76.86 crore at a price of Rs 31.22 per share versus the floor price of Rs 31 per share.
The PSU lender in its filing to the exchanges on Friday, said the Department of Financial Services under the Ministry of Finance has expressed its willingness to now sell up to 72.41 crore equity shares of the public sector lender, representing 8% of the bank’s total paid-up equity share capital.
Earlier, the government had proposed to divest 36.20 crore shares, or a 4% stake, through the OFS route, with an option to sell an additional 4% stake in case of robust demand. Following healthy subscription from institutional investors, the government chose to fully exercise the oversubscription option.
The OFS opened for non-retail investors on May 22, while retail investors and eligible employees can bid on May 25. Out of the total offer size, around 7.24 crore shares, equivalent to 10% of the issue, have been reserved for retail investors, subject to valid bids.
The stake sale is part of the government’s broader disinvestment and public shareholding compliance strategy for state-run banks. The move is expected to improve liquidity in the stock and help the lender meet minimum public shareholding norms over time.
The government's stake sale comes amid significant underperformance, with the Central Bank share price down 17% in 2026 so far. The stock price has declined 15% over a one-year period.
Its shares ended today at Rs 31.27 on the NSE, down by Rs 2.65 or 7.81% over the Thursday closing price.
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