Central Bank of India Offer for Sale (OFS) – 25 May 2026

The government of India has announced sale of 4% of Central Bank of India shares through an Offer for Sale (OFS), with a potential additional 4% under an oversubscription option. The OFS opened for non-retail investors on May 22, 2026, and for retail investors it will open on May 25, 2026.

An Offer for Sale (OFS) is a market mechanism that allows promoters or large shareholders of a listed company to sell their shares directly to investors through the stock exchange platform.

In simple terms, it allows bulk share sales by promoters, the government, or institutional investors in a transparent and time-bound manner.
 

Central Bank of India Offer for Sale Schedule:

The President of India, through the Department of Financial Services, Ministry of Finance, Government of India, proposes to sell up to 36,20,56,051 equity shares, representing 4% of Central Bank of India’s paid-up equity share capital.

If the investor demand stays strong, there is also an option to additionally sell 36,20,56,051 equity shares, representing another 4%, taking the total offer size up to 8%.

Currently, the government holds 89.27% stake in the bank.

Why companies use the OFS route

OFS is commonly used to:

• Comply with SEBI’s Minimum Public Shareholding norms
• Reduce promoter or government stake
• Improve liquidity and public participation

Understanding the OFS process with a simple example

Let’s consider XYZ Ltd., a listed company.

The promoter holds a 70% stake in the company. To improve liquidity or meet regulatory compliance, the promoter decides to sell part of its stake through OFS. An OFS is announced with a floor price.

On the OFS Day

• Investors can place bids on NSE/BSE at or above the floor price.
• Allocation is based on the price priority method.
• Sale proceeds go directly to the promoter, not the company.

Outcome

• Promoter stake reduces.
• Investors get an opportunity to buy shares through a transparent exchange-based process.