Indian government launches 8% OFS in Central Bank of India at ₹31 floor price
What's the deal? The Indian government on May 22 launched an Offer For Sale (OFS) to divest up to 8% of its stake in the Central Bank of IndiaDealroom has a profile for this one. Try Dealroom →. The floor price is set at ₹31 per equity share.
The OFS opened for non-retail investors on May 22. Retail investors and employees can bid starting May 25.
Why now? The divestment aligns with the government's broader push to reduce its holdings in public sector banks and raise revenue. Stake sales in state-owned lenders have been a recurring feature of India's fiscal strategy.
What could go wrong? A weak market environment or tepid investor appetite could force the government to accept a lower price or scale back the offering. Public sector bank stocks can be volatile, and any broader market downturn during the OFS window could dampen participation.
The signal: Central Bank of India is classified as a mature-stage institution on Dealroom, underscoring that this is less about funding growth and more about the Indian government steadily trimming its dominant ownership in established public sector banks. The 8% OFS — priced at just ₹31 per share — reflects a pragmatic revenue-raising exercise rather than a premium exit, suggesting continued appetite for incremental divestments as New Delhi balances fiscal targets with political sensitivities around bank privatisation.
Read more: inshorts.com
