New Delhi [India], May 22 (ANI): The government's Offer for Sale in Central Bank of India saw robust demand from investors, with the issue subscribed 2.35 times on the opening day, Secretary, Department of Investment and Public Asset Management (DIPAM) said on Friday.

'Offer for Sale in Central Bank of India received enthusiastic response from investors and was over subscribed 2.35 times on the first day,' Secretary, Department of Investment and Public Asset Management (DIPAM) posted on X on Friday, signalling strong institutional demand for the PSU lender's stake sale.

Following the robust response, the government has decided to exercise the entire green shoe option, which means that it will sell an additional 4% stake in the bank over and above the base offer. Retail investors and employees get to bid on Monday, May 25, 2026.

According to Central Bank of India's exchange filing, the President of India, acting through the Department of Financial Services, proposed to sell up to 36,20,56,051 equity shares, representing 4% of the total paid-up equity share capital, as the Base Offer Size on May 22, 2026 for non-retail investors.

The OFS also included an Oversubscription Option to additionally sell another 36,20,56,051 equity shares, or 4% of paid-up capital. With the green shoe now fully exercised, the total Offer Size rises to up to 72,41,12,102 equity shares, representing 8% of the bank's total paid-up equity share capital.

Of the total offer, 7,24,11,212 shares 10% of the Offer -- are reserved for retail investors on T+1 day, May 25, 2026, subject to valid bids. A separate 75,00,000 equity shares, about 0.1% of paid-up capital, have been earmarked for eligible employees.

The stake sale helps the government meet SEBI's minimum public shareholding norms, which mandate 25% public float for listed companies. Central Bank of India's public shareholding was below that threshold before the OFS.

The strong Day 1 subscription reflects renewed investor confidence in PSU banks. Central Bank of India exited RBI's Prompt Corrective Action framework in September 2022 and has since posted steady gains in profitability, loan growth, and asset quality. PSU bank stocks have been re-rated over the past two years on improved balance sheets and credit cycle tailwinds.

Trade day for non-retail bidding was May 22. Trade day for retail, employees, and carry-forward non-retail bids is Monday, May 25. Retail investors are typically offered a discount to the cut-off price discovered on Day 1.

Exercising the full 4% green shoe allows the Centre to maximize proceeds while market appetite is strong. The final amount raised will depend on the cut-off price, but at recent market levels the 8% stake is estimated to be worth around Rs 4,800-5,200 crore. A strong retail round would wrap up a successful transaction and support the government's broader FY27 divestment pipeline. (ANI)