Retail investors can bid for the Offer for Sale (OFS) of on Monday, 25 May, following a strong institutional investor response on Friday. The institutional portion of the was subscribed to more than 2.3 times, with bids received for over 76.86 crore shares against 32.58 crore shares on offer. At an indicative price of ₹31.01 per share, non-retail investors placed bids worth more than ₹2,380 crore.
The government is selling a 4% stake in the lender, with a greenshoe option to divest an additional 4%, at a floor price of ₹31 per share. If the entire 8% stake is subscribed, the Centre is expected to raise around ₹2,456 crore.
The stake sale is aimed at improving public shareholding in line with SEBI regulations, which require all listed companies to maintain a minimum public float of 25%. The government currently owns 89.27% of the bank, and its holding would decline to 81.27% if the greenshoe option is fully exercised.
The OFS marks the government’s first stake sale in the current fiscal year. In FY26, the Centre raised ₹2,624 crore through the OFS of Bank of Maharashtra and ₹1,419 crore through the OFS of Indian Overseas Bank. For the current fiscal, the government has set a target of mobilising ₹80,000 crore through PSU disinvestment and asset monetisation, significantly higher than the revised estimate of ₹33,837 crore for FY26.
Should you buy Central Bank of India shares?
Sunny Agrawal, Head of Fundamental Research at SBI Securities, said, “We advise investors to avoid participating in the OFS. There are better opportunities in the PSU Banking space than Central Bank. Although the bank has been reporting improvements in asset quality and profitability metrics, margins may remain under pressure amid intense competition for deposit accretion and elevated CD rates. Further, lower recovery from written-off accounts and treasury gains may impact near-term profitability.”
Similarly, Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, also advised avoiding the OFS.
Gulati explained that the government is selling you a stock at an 8.6% discount that should trade at a discount. “At ₹31, you’re buying a bank where NIM has already slipped below its own guidance of 3%, Q4 profit crashed 30% YoY, and the cost-to-income ratio sits stubbornly at 59% — that’s not a value buy, that’s a value trap dressed in discount clothing.”
He said that the stock faces an overhang of future stake sales, as well.
“Here’s the math no one’s telling you: The government still owns 81%+ even after this OFS. SEBI’s limit is 75%. That means at least 2-3 more rounds of stake sales are baked into your future. Every time you get comfortable with the stock, the government will be selling above you. That’s not an overhang — that’s a ceiling.”
PSU banks with 80%+ government ownership have never — and will never — command P/B multiple expansion. The market won’t pay 1.5–2x book for a bank where the promoter is a permanent, motivated seller, he said. “Central Bank trades at 0.85x P/B. It will likely trade at 0.85x P/B in two years, too.”
For a 5–8% listing pop that may not even materialise, you’re taking on NIM compression risk, earnings deceleration risk, and a structural re-rating ceiling, said Gulati, adding that the risk-reward is broken. “Skip this one: The best trade here is no trade.”
Technical Views
Central Bank of India share price today was trading flat. The stock opened at ₹31.30 apiece on the BSE; it touched an intraday high of ₹31.34 per share and a low of ₹31.10 apiece.
Rajesh Bhosale, Equity Technical and Derivative Analyst at , said the stock witnessed a sharp correction on Friday, accompanied by strong volumes, indicating heightened selling pressure. According to him, the stock is currently retesting its March swing lows near ₹30, with the entire April rally from ₹30 to ₹37 now completely erased.
Bhosale noted that ₹30 remains a crucial support level, and a decisive breach below this zone could trigger a further decline toward ₹25. On the upside, the bearish gap around ₹33.5 is expected to act as a strong resistance area. Given the weak technical setup, he advised investors to avoid aggressive long positions, as the stock is likely to continue underperforming in the near term.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.