Government to Sell 8% Stake in Central Bank of India through Offer for Sale

Central Bank of India Share Price in Focus as Government Announces 8% Stake Sale

The Government of India has announced that it will sell an 8% stake in Central Bank of India via an offer for sale (OFS), with the OFS opening for non-retail investors on May 22, 2026, and retail investors and employees on May 25, 2026. The floor price for the issue has been fixed at ₹31 per equity share, which is at an over 8.5% discount to the PSU lender's Thursday closing price of ₹33.94.

The government may exercise an oversubscription option to sell more shares depending on investor demand. Under the base offer, the government proposes to sell 36,20,56,051 equity shares, representing 4% of the total issued and paid-up equity share capital of the bank. Additionally, the Centre has retained the option to sell an equal number of shares under the oversubscription option.

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The OFS will reserve at least 10% of the offer shares for retail investors, while 75,00,000 equity shares have been earmarked for eligible employees of the bank. Retail investors will also be eligible to bid at the cut-off price under the OFS mechanism.

The government has stated that employee eligibility will be determined based on PAN details shared by the bank with stock exchanges one trading day prior to the OFS opening date. Eligible employees can apply for shares worth up to ₹5 lakh and may additionally bid in the retail category subject to applicable limits.

The OFS for non-retail investors will take place on May 22 between 9:15 am and 3:30 pm. Non-retail investors will also have the option to carry forward their unallotted bids to T+1 day. Retail investors and employees will be able to place bids on May 25 during the same trading hours.

Goldman Sachs (India) Securities Private Limited has been appointed as the broker for the seller in the transaction. The OFS is being conducted in accordance with SEBI's OFS guidelines and stock exchange regulations. The shares offered through the OFS will continue to trade in the normal market segment during the issue period.

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The stake sale forms part of the government's broader divestment and public shareholding compliance strategy for public sector enterprises and banks.