Institutional buyers over-subscribe Central Bank of India OFS; govt exercises green shoe option
The government had said it will sell a 4 per cent stake in Central Bank of India, with a green shoe option of an additional 4 per cent at a floor price of Rs 31 per share.
Institutional investors on Friday put in over Rs 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 per cent 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 per cent stake in Central Bank of India, with a green shoe option of an additional 4 per cent at a floor price of Rs 31 per share. If the 8 per cent stake on offer is fully subscribed, the stake sale would fetch Rs 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 Rs 31.01 a share, non-retail investors put in over Rs 2,380 crore worth of bids for Central Bank OFS on Friday.
This is the first OFS by the government in the current fiscal.
The floor price of Rs 31 a share is 8.58 per cent lower than the stock's Thursday closing price of Rs 33.91 on the BSE.
Shares of Central Bank of India slipped 7.90 per cent to close at Rs 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 per cent.
The government currently holds an 89.27 per cent stake. If the government exercises the green shoe option, its total stake in the state-owned bank will come down to 81.27 per cent.
In the 2025-26 fiscal, the government carried out OFS of two public sector banks -- Bank of Maharashtra (Rs 2,624 crore) and Indian Overseas Bank (Rs 1,419 crore).
In the current fiscal, the government aims to mop up Rs 80,000 crore through PSU disinvestment and asset monetisation, up from Rs 33,837 crore pegged in the Revised Estimates for FY26.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
Google News