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Central Bank OFS gets over-subscribed 2.35 times as institutional bids cross ₹2,380 crore
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The government has decided to exercise the green shoe option and put the entire 8% stake in Central Bank of India on the block, Department of Investment and Public Asset Management Secretary Arunish Chawla said in a post on X.
Institutional investors on Friday put in over ₹2,380 crore worth of bids in the Offer For Sale (OFS) of Central Bank of India shares, which got over-subscribed more than two times.
The government has decided to exercise the green shoe option and put the entire 8% stake in Central Bank of India on the block, Department of Investment and Public Asset Management Secretary Arunish Chawla said in a post on X.
"Offer for Sale in Central Bank of India received enthusiastic response from investors and was over-subscribed 2.35 times on the first day," Chawla said.
Retail investors and employees will be able to bid in the share sale offer on Monday. The government had said it will sell a 4% stake in Central Bank of India, with a green shoe option of an additional 4% at a floor price of ₹31 per share. If the 8% stake on offer is fully subscribed, the stake sale would fetch ₹2,456 crore to the government.
Till the close of trading hours on Friday, institutional investors put in bids for over 76.86 crore shares, as against 32.58 crore shares on offer.
At the indicative price of ₹31.01 a share, non-retail investors put in over ₹2,380 crore worth of bids for Central Bank OFS on Friday.
This is the first OFS by the government in the current fiscal.
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The floor price of ₹31 a share is 8.58% lower than the stock's Thursday closing price of ₹33.91 on the BSE.
Shares of Central Bank of India slipped 7.90% to close at ₹31.23 on BSE on Friday.
The OFS will help the government inch towards meeting the Securities and Exchange Board of India's minimum public shareholding norm.
According to Sebi, all listed companies must maintain a public shareholding of 25%.
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The government currently holds an 89.27% stake. If the government exercises the green shoe option, its total stake in the state-owned bank will come down to 81.27%.
In the 2025-26 fiscal, the government carried out OFS of two public sector banks -- Bank of Maharashtra (₹2,624 crore) and Indian Overseas Bank (₹1,419 crore).
In the current fiscal, the government aims to mop up ₹80,000 crore through PSU disinvestment and asset monetisation, up from ₹33,837 crore pegged in the Revised Estimates for FY26.
(Except for the headline, Fortune India has not edited the content of this PTI report.)