Central Bank of India OFS opens for retail investors today — All you need to know

The portion reserved for non-institutional investors had opened for subscription on Friday, which had received full subscription.

The non-retail portion reserved subscription for 76.86 crore shares, compared to the 36.2 crore shares that were reserved for them, taking the total subscription figure to 2.35 times the total shares on offer.

Following the response, the government decided to exercise the entire greenshoe option to divest another 4% stake in the lender.

The Retail OFS

• For retail investors, the OFS will include a base issue size of 3.62 crore shares, and an oversubscription option of another 3.62 crore shares.
• The cut-off price for the retail bidding has been fixed as ₹31 per share.
• Here’s how retail investors can subscribe to the OFS:
• Open your trading account and get to the “Corporate Action” or “OFS” section
• Check your floor price, bid quantity, price, and other aspects mentioned.
• Bid price entered by the retail investor should always be above the cut-off price. Bids placed under the cut-off price will be rejected.
• Sufficient funds must be available for the bids to be accepted, following which the bid amount will be blocked.

In case bids are accepted, the number of shares accepted will be credited into your demat account within T+1 days. If bids are rejected, the funds will be refunded.

Retail investors are those who have an authorized share capital of up to ₹2 lakh.

Central Bank of India Shareholding

The government still holds 89.27% stake in Central Bank of India, making it one of the many PSU lenders where government shareholding is not compliant with Minimum Public Shareholding norms.

The bank had earlier raised funds through a QIP as well, in order to get to the 75% shareholding mark for the government.

Among public shareholders, Life Insurance Corporation of India (LIC) has a 3.26% stake, while over 7 lakh retail investors have a 3.42% stake.

Shares of Central Bank of India ended 8% lower on Friday at ₹31.22. The stock is down 17% so far this year and was among the top Nifty 500 losers on Friday.