Govt to Sell Up to 8% Stake in Central Bank of India Through OFS

The government has announced plans to sell up to an 8% stake in Central Bank of India through an offer for sale (OFS). 

The announcement was made by Disinvestment Secretary Arunish Chawla on Thursday. 

Details of the Stake Sale 

The OFS includes a base offer of a 4% equity stake in the bank. The government also has an option to sell an additional 4% stake through a green shoe option if there is strong demand from investors. 

At present, the government holds 89.27% stake in Central Bank of India. 

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OFS Timeline for Investors 

The offer will open for non-retail investors on Friday. Retail investors will be able to place bids on Monday. 

Based on the bank’s closing share price on Thursday, the government may raise nearly ₹2,455 crore if the full 8% stake is sold. 

About Central Bank of India  

Central Bank of India is a commercial bank that operates across multiple business segments, including Treasury Operations, Corporate and Wholesale Banking, Retail Banking, and other banking services. Its treasury business includes investments in government securities, money market activities, and foreign exchange operations.  

Central Bank of India  Share Price Movement 

Central Bank of India share price (NSE: CENTRALBK) was trading at ₹32 on Friday morning, down 5.66% or ₹1.92. The stock opened at ₹32.30 and touched an intraday low of ₹31.88. The bank’s market capitalisation stood at ₹28,960 crore, while its price-to-earnings (P/E) ratio was 6.40. The stock has a 52-week high of ₹41.20 and a 52-week low of ₹31.30. The bank currently offers a dividend yield of 3.75 per cent, with a quarterly dividend amount of ₹0.30 per share. 

Conclusion 

The OFS in Central Bank of India is part of the government’s disinvestment plan and could help increase public shareholding in the bank while raising funds for the exchequer. 

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