- Shares of Central Bank of India fell nearly 6% after government announced share sale
- Government plans to disinvest up to 8% equity stake via offer for sale route
- Floor price for OFS set at Rs 31, an 8.6% discount to previous close of Rs 33.94
Small-Cap Stock Under Rs 50: Shares of Central Bank Of India fell nearly 6% on Friday, May 22, after the government announced that it will disinvest up to 8% of its equity stake via an offer for sale (OFS) route. The small-cap stock, priced under Rs 50, plunged in early trade and extended losses over the government's plan to offload shares in the public sector lender. The floor price for the OFS is set at Rs 31 per equity share, which is at a discount of 8.6% to Thursday's closing price of Rs 33.94 apiece on the NSE.
Shares of Central Bank of India last traded 5.37% lower at Rs 32.10 apiece on the NSE. The PSB stock opened at Rs 32.30 against a previous close of Rs 33.92 and extended losses of upto 6% to hit an intrday low of Rs 31.83 apiece on the NSE. The stock trades near to its 52-week low level of Rs 31.30 on the NSE. The stock has plunged over 6% in the last one week, 13% in one month, 15% on a year-to-date basis, and 13% in the last one year. The lender commands a market cap of Rs 29,036 crore.
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Central Bank Of India Intraday Share Price
Govt to sell upto 8% stake in Central Bank of India
The Government of India has initiated the process to divest its stake in Central Bank of India via the offer for sale (OFS) route, notified the Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance. The floor price for the OFS has been set at Rs 31 per equity share, which is at a discount of 8.6% to Thursday's closing price of Rs 33.94 apiece on the NSE. Under the base offer, the government proposes to sell 36,20,56,051 equity shares of face value Rs 10 each, representing 4% of the total issued and paid-up equity share capital worth Rs 1,122.4 crore at the floor price.
The government will also exercise a greenshoe option to sell an additional 36,20,56,051 equity shares of Central Bank of India, representing another 4% stake in the public sector lender, in the event of an oversubscription. This means the promoter plans to offload a total of 72.41 crore shares or upto 8% stake in the public sector lender. If the green shoe option is exercised, the government is likely to raise around Rs 2,455 crore via the stake sale. Non-retail investors can place bids for the OFS today between 9:15 am-3:30 pm. However, retail investors will be able to subscribe on Monday, May 25.
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