Central Bank of India shares plunged as the stock market opens; the government is selling its 8% stake. As soon as the stock market of Central Bank of India opens, the government is selling its 8% stake. – ..

As soon as the stock market opens, a big news is coming out from the banking sector today. Heavy selling was seen in the shares of the major public sector bank ‘Central Bank of India’ on Friday. As soon as the market opened, the bank’s shares fell by about 6 percent to Rs 31.89 in Bombay Stock Exchange (BSE). The main reason for this sharp fall in shares is the decision of the Central Government to sell its major stake in the bank. The government has officially started the process of selling its stake in this government bank through Offer for Sale (OFS) from Friday itself.

Government is selling shares at floor price of ₹31, getting huge discount

The central government is preparing to sell a total stake of up to 8 percent in Central Bank of India through this Offer for Sale (OFS). The special thing is that the government is offering this stake at a much cheaper price than the current market price of the bank.

On Thursday, shares of Central Bank of India closed at Rs 33.91 on BSE. The government has fixed the ‘floor price’ of ₹ 31 per share for this OFS. This means that the government is selling its shares to investors at a bumper discount of more than 8 percent compared to Thursday’s closing level.

Know when and how common (retail) investors will be able to bid

According to the official information given by the Department of Investment and Public Asset Management (DIPAM), in the first phase the Central Government will sell its 4 percent equity stake in this government bank through Offer for Sale. Along with this, the government also has the option to sell additional 4 percent stake under ‘Green Shoe Option’, due to which the total stake sale can go up to 8 percent.

The bidding schedule for this OFS is as follows:

• Non-Retail Investors (Institutional Investors): Non-retail investors will be able to place their bids for this offer for sale from Friday, May 22.

• Retail Investors (Retail/Common Investors): Common and small investors of the country will be able to bid for shares at this discounted price from next week, Monday, May 25.

Why is the government selling its stake? Understand the mathematics behind this

According to the latest data available on the stock exchanges, as of the quarter ending March 31, 2026, the total stake of the central government in the Central Bank of India was 89.27 percent, while the public shareholding was only 10.73 percent.

In fact, according to the Minimum Public Shareholding (MPS) rules of the Securities and Exchange Board of India (SEBI), it is mandatory for the public to hold at least 25 percent stake in any listed company. To comply with this rule, the Central Government will have to sell its additional 14.27 percent stake in the Central Bank of India in the market in a phased manner. Taking steps in this direction, the government has brought this OFS. Let us tell you that in August last year itself, the government had appointed the leading global firm ‘Goldman Sachs’ as its transaction advisor to take forward the disinvestment process in four public sector banks including the Central Bank of India.

72% return in 5 years, but decline in last 1 year

If we look at the stock performance of Central Bank of India, its track record in the long term has been mixed. In the last five years, the bank’s shares have seen a rise of about 72 percent. On May 21, 2021, the bank’s shares were trading at just Rs 18.50, which today, even after the fall on May 22, 2026, remains at Rs 31.89.

However, the last one year has been a bit disappointing for investors, as the bank’s shares have declined by about 12 percent during this period. The 52-week highest level (52-Week High) of the shares of this government bank is Rs 41.18, while its 52-week lowest level (52-Week Low) is recorded at Rs 31.29. Now it has to be seen what kind of response this discount offer of the government gets from retail investors on Monday.