The Indian government has announced an Offer for Sale (OFS) to divest up to an 8% stake in the state-owned Central Bank of India. This strategic move, aimed at complying with market regulator SEBI's minimum public shareholding norms, will see shares offered at a floor price of ₹31 apiece.
The OFS is scheduled across two trading days. Non-retail investors were permitted to place their bids on Thursday, May 22, 2026. The offer will then open for retail investors and eligible employees on Monday, May 25, 2026, allowing them to participate in the unsubscribed portion of the retail category.
Details of the Central Bank of India OFS
The government's initial base offer size comprises 36,20,56,051 shares, representing 4% of the bank's total issued and paid-up equity share capital. An additional option to sell another 36,20,56,051 shares is available, bringing the total potential divestment to 8%.
The floor price of ₹31 per share represents an 8.66% discount compared to Central Bank of India's closing price of ₹33.94 on the NSE on the preceding Thursday.
Compliance with SEBI Norms
Currently, the Indian government holds a significant 89.27% stake in Central Bank of India. SEBI regulations mandate that listed companies maintain a minimum public shareholding of 25%. This OFS is a crucial step for the bank to align with these regulatory requirements by reducing the government's holding closer to the 75% threshold.
Furthermore, Central Bank of India has made a separate provision to offer 75,00,000 additional shares to its eligible employees through a stock exchange mechanism. Employees can apply for shares amounting to up to ₹5 lakh under specific terms and conditions.
Bidding for the OFS will take place on separate windows of the BSE and NSE, commencing from 9:15 a.m. and closing at 3:30 p.m. Indian Standard Time on both designated trading days.