Central Bank of India share price falls 6% as centre to dilute 8% stake via OFS
Sarthak Kumar
Central Bank of India shares fell nearly 6% in Friday’s trade after the Government of India launched an Offer for Sale (OFS) in the public sector lender as part of its broader divestment and regulatory compliance strategy.
The stock declined as much as 5.37% to ₹32.10 on the NSE against the previous close of ₹33.92. More than 3.64 crore shares had changed hands on the counter at the time of writing.
The weakness in the stock follows the government’s announcement to sell up to 36.2 crore equity shares, representing 4% stake in the bank, with an option to additionally divest another 4% in case of oversubscription. The floor price for the OFS has been fixed at ₹31 per share, implying a discount to the previous closing price.
The OFS opened for non-retail investors on May 22, while retail investors and eligible employees will be able to bid on May 25. Goldman Sachs (India) Securities Pvt Ltd has been appointed as the broker for the transaction.
Central Bank of India currently has government shareholding of well above 90%, making it one of the most tightly held listed PSU banks in the country. Under SEBI’s minimum public shareholding norms, all listed companies — including state-run banks — are required to maintain at least 25% public float by August 2026.
Market participants believe the current OFS is not only aimed at raising divestment proceeds but is also necessary to gradually bring down promoter holding in line with regulatory requirements. Even if the entire 8% stake sale option is exercised, government ownership would still remain significantly above the mandated threshold, indicating further stake dilution could follow in the coming quarters.
The transaction also forms part of the Centre’s aggressive FY27 divestment roadmap. The Union Budget for FY27 has set a disinvestment target of ₹80,000 crore, more than double the revised FY26 estimate.
Disclaimer: This article is based on market data, exchange filings and publicly available information. Investors are advised to consult certified financial advisors before making investment decisions.