Shares of Central Bank of India Ltd. saw a significant decline of nearly 6% in early trading on Friday, May 22, 2026. This sharp fall coincided with the commencement of a two-day Offer for Sale (OFS) by the government, which aims to divest a portion of its holding in the public sector undertaking (PSU) bank.
Government Initiates Offer for Sale
The Indian government, which currently holds an 89.27% stake in Central Bank of India, is undertaking the OFS to comply with SEBI's minimum public shareholding norms. These regulations mandate listed companies to maintain at least 25% public ownership. The floor price for the OFS has been set at Rs 31 per share, representing an 8.66% discount compared to Thursday's closing price of Rs 33.94 on the NSE.
The base offer size involves the sale of up to 36,20,56,051 shares, equivalent to 4% of the total issued and paid-up equity share capital. An additional option to sell another 4% (36,20,56,051 shares) has also been made available, potentially bringing the total stake on offer to 8%.
OFS Details for Investors
- Non-Retail Investors: Can place bids for shares on Friday, May 22, 2026.
- Retail Investors & Eligible Employees: Can bid for the issue on Monday, May 25, 2026.
Eligible employees have been offered an additional 75,00,000 shares through the stock exchange mechanism, with applications capped at Rs 5 lakh per employee.
Impact of Q4 Earnings
The recent share decline is also attributed to the bank's financial performance in the March quarter. Central Bank of India reported a 29.91% year-on-year drop in its net profit, settling at Rs 724.43 crore. This profit reduction was largely in line with a 33% year-on-year decline in other income for the same period. Despite this, the bank's interest earned for the quarter saw a 12.09% increase, reaching Rs 9,660.67 crore.
Overall, the PSU bank stock has experienced a 15.13% fall in 2026 so far, reflecting investor reactions to both its earnings report and the government's stake dilution efforts.