Central Bank declines as government begins stake sale via OFS

Central Bank of India dropped 6.52% to Rs 31.70 after the government launched an offer for sale (OFS) to divest stake in the public sector lender.

The government set a floor price of Rs 31 per share for the OFS, representing a discount of about 8.6% to the previous closing price of Rs 33.91. The discount likely weighed on investor sentiment and pressured the stock.

According to BSE data, the OFS opened for non-retail investors on 22 May 2026 and will open for retail investors on 25 May 2026.

The base offer comprises 36.20 crore shares, representing around 4% equity stake in the bank, with an oversubscription option of an additional 36.20 crore shares. Including the greenshoe option, the total OFS size stands at 72.41 crore shares, equivalent to around 8% of the bank?s total equity share capital.

Of the total offer, 32.58 crore shares have been reserved for non-retail investors, while 3.62 crore shares have been earmarked for retail investors under the base offer.

As of 1:05 PM on 22 May 2026, the non-retail portion of the OFS had received bids for 6.23 crore shares, translating into 19.14% subscription against the base non-retail offer size of 32.58 crore shares.

The government may also offer an additional 75 lakh shares to eligible employees under a separate employee offer. Eligible employees can apply for shares worth up to Rs 5 lakh under the scheme.

The Government of India held 89.27% stake in the PSU lender. On a standalone basis, the PSU lender's net profit fell 29.91% to Rs 724.43 crore on 4.62% increase in total income to Rs 10,810.49 crore in Q4 March 2026 over Q4 March 2026.

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