Government OFS: President of India Sells 8.08% Stake in Central Bank of India

NEW DELHI, May 2026: The Government of India has successfully concluded an Offer for Sale (OFS) for its stake in Central Bank of India, offloading 8.08% of the public sector lender's total paid-up equity share capital. The transaction, which took place over two days last week, has reduced the President of India's promoter holding to 81.19%.

In a regulatory filing dated May 26, 2026, the Department of Financial Services (DFS), Ministry of Finance, informed the stock exchanges that it had sold a total of 73,16,12,102 equity shares of the bank.

Details of the OFS Transaction

The OFS was executed through the separate designated windows of BSE Limited and the National Stock Exchange of India (NSE) on:

• May 22, 2026 (T day): For non-Retail Investors.

• May 25, 2026 (T+1 day): For Retail Investors, Employees, and non-Retail Investors carrying forward un-allotted bids.

The government had initially proposed to sell up to 36,20,56,051 equity shares (representing 4% of the bank's paid-up capital), with an oversubscription option to sell an additional 4% (another 36,20,56,051 shares). Additionally, the filing noted that an employee offer of 75,00,000 shares (0.1% of capital) was also made available.

Impact on Shareholding

The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The key changes in the government's stake are as follows:

The bank’s total paid-up equity share capital remains unchanged at 9,05,14,01,274 equity shares with a face value of ₹10 per share.

Official Communication

The report to the stock exchanges and the Board of Directors of Central Bank of India was authorized by Shri Jitendra Asati, Director at the Department of Financial Services.

"In compliance with Regulation 29(2) of the SEBI Takeover Regulations, we are hereby notifying the information regarding sale of Equity shares made by us on T day, and T+1 day," the filing stated.

The government confirmed that the report is being submitted within the mandated 2 working days of the closure of the OFS transaction, as required under Regulation 29(3) of the Takeover Code.

Context

The OFS route has become a primary mechanism for the government to meet its disinvestment targets while maintaining a promoter status in public sector undertakings. This transaction significantly infuses liquidity while only marginally diluting the government's strategic holding in Central Bank of India, which remains firmly in public hands.

The shares are listed on both the BSE and NSE. Market analysts will now watch for any follow-up offers as the government continues to manage its portfolio of PSU bank stakes.