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Friday brought a decline for investors of the public sector Central Bank of India. As soon as the market opened on Friday, heavy selling was seen in the bank’s shares in Bombay Stock Exchange (BSE) and they fell by about 6 percent to the level of ₹ 31.89.
The main reason for this big fall in shares is the decision of the Central Government to sell its stake in the bank. The government has started the process of selling its stake through Offer for Sale (OFS) from Friday (22 May 2026), for which a discount of more than 8% has been fixed from the current market price.
Government selling shares at floor price of ₹31 (OFS Details)
The government has kept the offer for sale price very low to attract investors:
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Floor Price: Government will sell its stake in Central Bank of India through this OFS. ₹31 per share Selling at base price of Rs. The bank’s shares had closed at ₹33.91 on BSE on Thursday, compared to which this floor price is at a discount of more than 8%.
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How much stake will be sold: According to DIPAM, the government will initially invest through this OFS. 4 percent equity stake Will sell. Furthermore, the government has 4 percent more share ‘Green Shoe Option’ to sell is also available. That means overall the government can sell up to 8% stake in the market.
Bidding Timeline
If you want to invest in this Offer for Sale, the government has set the following schedule for different investors:
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Non-Retail Investors: Institutional and large investors Friday, 22 may You will be able to place your bid for this OFS from .
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Retail Investors: Common and small investors of the country Monday, 25 may Can participate in the bidding process to buy this stake.
Why is the government selling its stake? (Minimum Public Shareholding Norms)
According to the data available on the stock exchange as of March 31, 2026, the total stake of the Central Government in the Central Bank of India is 89.27 percent Whereas public shareholding is only 10.73 percent.
Compulsion of rules: According to SEBI’s ‘Minimum Public Shareholding’ (MPS) rules, it is mandatory for the public to have at least 25% stake in any listed company. To comply with this rule, the government will have to reduce its stake in the bank to 75%. This means that even after this 8% OFS, the government will have to 14.27 percent more stake will have to be sold.
Let us tell you that in August last year, the Central Government had appointed a global financial firm to handle the disinvestment process in four public sector banks including the Central Bank of India. Goldman Sachs Was appointed as transaction advisor.
Only 72% return in 5 years, decline in 1 year
The track record of Central Bank of India shares has been a bit slow compared to other public sector banks:
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5 Years Performance: The bank’s shares have seen a rise of only 72 percent in the last five years. The share which was trading at ₹18.50 on 21st May 2021 is trading at ₹31.89 today on 22nd May 2026.
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Annual Performance: If we look at the data of last one year, this stock has 12 percent decline Has been registered.
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High and Low Level: The bank’s shares have a 52-week high of ₹41.18, while its 52-week low is ₹31.29. After Friday’s fall, the stock has reached very close to its lowest level.
