Central Bank of India shares plunged 7.7% Friday to Rs 31.30 on BSE as the government began the process of divesting its holding in the Mumbai-based lender.
The floor price for the sale was fixed at Rs 31 per share.
The government said it may divest up to 8% in the bank through an offer for sale. The government held 89.27% in the bank as of end March.
The 8% divestment plan includes a 4% dilution through green shoe option. About 10% of the offer will be available for retail investors while 0.1% of the total issued and paid-up equity share capital of the Bank will be offered to the employees.
Non-retail investors were allowed to bid on Friday, while retail investors can bid for it on Monday, the notice said.
The bank would need to reduce the government hoarding further to comply with the Sebi's rule of minimum 25% public holding.
The bank's annual net profit stood at Rs 4,369 crore, representing a 15.4% growth. Its gross advances grew 19% to Rs 3.45 lakh crore.
