The Government of India launched an Offer for Sale (OFS) of up to 8 per cent equity in Central Bank of India on 22 May 2026, with bidding for non-retail investors opening on Friday as the bank's shares edged up 0.29 per cent in early trade. The floor price has been fixed at ₹31 per equity share, representing a discount of over 8.5 per cent to the stock's Thursday closing price.

Structure of the Offer

The base offer covers 36,20,56,051 equity shares, equivalent to 4 per cent of the bank's total issued and paid-up capital. The government has also retained a green shoe option to sell an additional 4 per cent stake, taking the total potential divestment to 8 per cent. If the oversubscription option is fully exercised, the OFS is estimated to be worth approximately ₹2,455 crore, based on Thursday's closing price.

DIPAM Secretary Arunish Chawla confirmed the offer structure in a post on social media, stating: 'Government offers to disinvest 4 per cent equity in the Central Bank of India with an additional 4 per cent as green shoe option.'

Bidding Schedule and Eligibility

Retail investors and eligible employees can place bids on 25 May 2026. Bidding windows on both days run from 9:15 am to 3:30 pm. Non-retail investors who do not receive allotment on the first day have the option to carry forward their unallotted bids to the following trading session.

Employee eligibility will be determined using PAN details shared by the bank with stock exchanges one trading day before the OFS opens.

Allocation Breakdown

Under the offer terms, at least 25 per cent of shares reserved for non-retail investors will be allocated to mutual funds and insurance companies, subject to valid bids at or above the floor price. A minimum of 10 per cent of total OFS shares is reserved for retail investors, while 75 lakh equity shares have been earmarked for eligible employees. Employees may apply for shares worth up to ₹5 lakh and can additionally bid in the retail category, subject to applicable limits.

Context and Significance

The divestment is part of the Centre's broader programme to pare its holdings in public sector undertakings (PSUs) and raise budgetary resources. Central Bank of India, a state-owned lender, has seen its stock recover meaningfully over the past two years amid an improvement in asset quality across the PSU banking space. Notably, the 8.5 per cent discount to market price is designed to attract institutional participation and ensure price discovery. The OFS mechanism — conducted directly on stock exchange platforms — reduces execution risk compared with traditional follow-on public offers.