Government Launches 4% Stake Sale in Central Bank of India

Government Launches 4% Stake Sale in Central Bank of India


Blitz Bureau

MUMBAI: As offer for sale (OFS) for Central Bank of India shares opened for non-retail investors on May 22. Retail investors and employees can bid on May 25, and the floor price for the issue has been fixed at Rs 31 per equity share at over 8.5 per cent discount to the PSU lender’s May 21 closing price.

The Government may additionally exercise an oversubscription option to sell more shares depending on investor demand, the official statement said.

“Government offers to disinvest 4 per cent equity in the Central Bank of India with an additional 4 per cent as green shoe option,” DIPAM Secretary Arunish Chawla said in a social media post.

The Government had proposed to sell 36,20,56,051 equity shares, representing 4 per cent of the total issued and paid-up equity share capital of the bank. The OFS, if the green shoe option is exercised, is likely to be worth around Rs 2,455 crore, based on the closing price of the bank’s stock on May 21.



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