Central Bank of India OFS: Floor price, dates 2026

What the government is selling and why it matters

Central Bank of India shares dropped sharply on May 22, 2026 after the Government of India announced an Offer for Sale (OFS) to divest up to an 8% stake in the PSU lender. The sale includes a base offer of 4% and an additional 4% that can be exercised under a greenshoe (oversubscription) option.

The OFS is part of the government’s broader divestment programme and also links to the minimum public shareholding (MPS) requirements for listed entities. According to the Hindi report in the provided material, the government may need to sell a further 14.27% stake in Central Bank of India to meet MPS norms.

OFS schedule: two trading days, separate exchange window

The OFS is scheduled across two trading days via a dedicated OFS window on both BSE and NSE. Non-retail investors can bid on May 22, 2026 (T day). Retail investors and eligible employees can bid on May 25, 2026 (T+1 day).

The bidding window on both days runs from 9:15 am to 3:30 pm (IST). Non-retail investors also have the option to carry forward unallotted bids to the T+1 day, as per the bank’s stock exchange disclosure.

Floor price set at ₹31, at a steep discount

The Department of Investment and Public Asset Management (DIPAM) fixed the floor price at ₹31 per equity share. The floor is described as being over 8.5% below the previous close.

The discount was cited in multiple ways across the inputs: about 8.55%, 8.58%, 8.66%, and around 9.4%, reflecting small differences in referenced closing prices (₹33.92 to ₹33.94 on NSE, and around ₹33.9 in another note). Either way, the floor price implies a meaningful discount for investors bidding through the OFS window.

Offer size: 4% base plus 4% greenshoe

Under the base offer, the government proposed to sell 36,20,56,051 equity shares, representing 4% of the bank’s total issued and paid-up equity share capital. The greenshoe option provides for an additional 36,20,56,051 shares, taking the total potential sale to about 72.41 crore shares, or roughly 8%.

At the floor price of ₹31, the base offer works out to ₹1,122.4 crore and the full offer size (if greenshoe is exercised) to ₹2,244.8 crore.

Key OFS terms at a glance

What happened to the stock on May 22

Central Bank of India shares fell about 6% on May 22 as the OFS opened for non-retail investors. On BSE, the stock hit a day’s low of ₹31.85, down 6.07% versus the prior close. On NSE, the stock opened at ₹32.30 and touched an intraday low of ₹31.83, down more than 6%.

By 11:20 am, the stock was quoted at ₹32.13, down 5.3%, with about 44 million shares changing hands (as per the cited market update). The reaction was consistent with the discounted floor price and the prospect of additional supply through the stake sale.

Why the discount and supply matter for trading

An OFS floor price below the prevailing market price often creates near-term pressure as traders reassess where the stock might settle around the offer price. The potential 8% stake sale also increases near-term supply, which can influence price discovery during the OFS window and immediately after, depending on subscription and allocation.

The structure also matters for investor participation. Institutional investors bid first, and retail participation follows on T+1. The ability for non-retail bidders to carry forward unallotted bids to T+1 can affect demand dynamics on the second day.

Background signals: index inclusion, market cap, and longer trend

The provided inputs note that Central Bank of India is part of the BSE 500 index. They also state that after the day’s fall, the bank’s market capitalisation stood at about ₹29,000 crore.

The same Hindi excerpt adds that the share price has halved over the last two years. Separately, the material also mentions the stock was down 15.13% in 2026 year-to-date at the time of reporting.

Market impact: what investors will track next

In the near term, market participants will track subscription levels across the non-retail day (May 22) and retail and employee day (May 25). Investors will also watch whether the government exercises the greenshoe option, which would take the divestment from 4% to 8%.

The offer’s outcome can influence trading liquidity and price behaviour, particularly because the floor price (₹31) is close to the reported intraday lows (₹31.83-₹31.85). Any divergence between the traded price and the effective OFS clearing levels typically shapes the post-OFS sentiment.

Analysis: what the OFS indicates about policy and compliance

The OFS underscores the government’s continued use of the exchange-based stake sale route for PSU holdings. It also highlights the regulatory push around public shareholding thresholds, with the report indicating that further stake reduction may be required to meet MPS norms.

For investors, the key takeaway is that the supply overhang is not only the 4% base offer but also the possibility of an additional 4% via greenshoe, alongside the broader MPS-linked context cited in the report.

Conclusion

The Government of India’s Central Bank of India OFS, priced at a ₹31 floor and structured as a 4% sale plus a 4% greenshoe, triggered a sharp decline of around 6% in the stock on May 22, 2026. Non-retail bidding began on May 22 and retail and employee bidding is scheduled for May 25, both during regular market hours.

The next confirmed milestones are the completion of the two-day OFS process and clarity on whether the greenshoe portion is exercised, which will determine if the stake sale remains at 4% or expands to the full 8%.