LIC raises Central Bank stake to 6.06% as 8% OFS grows

Overview of the twin developments

Life Insurance Corporation of India (LIC) raised its shareholding in Central Bank of India to 6.06% after a fresh market purchase, according to an exchange filing by the bank. The disclosure came as the lender also updated markets on a separate but related development: the government decided to fully exercise the oversubscription option in its ongoing offer for sale (OFS). Together, the two updates put the spotlight back on shareholding changes at the public sector lender. They also frame how ownership is shifting at a time when the government is selling a part of its stake through the market. The announcements provide clarity on the quantum of LIC’s purchase, the revised size of the OFS, and the investor categories participating in the sale.

LIC’s market purchase: what the bank disclosed

Central Bank of India told stock exchanges that LIC acquired 26.26 crore equity shares through market purchases on May 22. The bank said this represented a 2.901% stake in the lender. As a result, LIC’s total holding in Central Bank of India increased to 6.06% from 3.16% earlier. The disclosure specifically attributes the increase to the May 22 market purchase. The filing did not add any further details on the price or the trading window used for the purchase, beyond the date and the number of shares acquired.

Ownership snapshot: promoter group remains dominant

The bank also cited the latest shareholding pattern, where the promoter group held 89.27% stake. Other categories mentioned in the disclosure included insurance companies at 3.26% and banks at 1.20%. Foreign portfolio investors (FPIs) accounted for 0.75% shareholding. These data points underline that despite LIC’s increased stake, promoter holding remains high. The numbers also provide a reference point for how the OFS could change the broader shareholding mix, depending on demand and allotment.

Government’s OFS: base offer and oversubscription option

In its update, Central Bank of India referred to an earlier disclosure dated May 21, 2026, on the government’s stake sale plan. Under the original base offer, the government proposed to sell up to 36,20,56,051 equity shares, representing 4% of the bank’s total paid-up equity share capital. The government also retained an option to additionally sell another 36,20,56,051 equity shares, equivalent to another 4% of the paid-up equity share capital, under an oversubscription option. This structure meant the total sale could be expanded if demand warranted it.

Oversubscription option exercised: total offer rises to 8%

The bank said the President of India, acting through the Department of Financial Services under the Ministry of Finance, informed stock exchanges about the decision to exercise the oversubscription option. Central Bank of India added that the government has now decided to fully exercise this option. Accordingly, the total OFS size has increased to up to 72,41,12,102 equity shares, representing 8% of the bank’s total paid-up equity share capital. The disclosure clearly sets out that the expansion is from 4% to 8% of paid-up equity share capital via the full oversubscription exercise.

OFS schedule and who can bid

As per the bank’s filing, the OFS opened on May 22 for non-retail investors. It will open on May 25 for retail investors, employees and non-retail investors carrying forward unallotted bids from T-day. This timetable indicates a phased participation, with institutions and other non-retail categories first, followed by retail and employees. The mention of carry-forward bids also signals the mechanism for handling unallotted demand from the earlier bidding window.

Reservations for retail investors and employees

Out of the total offer size, 7,24,11,212 equity shares, or 10% of the offer, will be reserved for retail investors on May 25, subject to valid bids. Additionally, 75,00,000 equity shares will be offered to eligible employees as part of the issue. The bank noted this employee portion is nearly 0.1% of the bank’s total issued and paid-up equity share capital. These reservations define how the expanded OFS is split across investor segments.

Stock move and the OFS floor price mentioned in reports

Central Bank of India shares closed at Rs 31.29 on BSE, down 0.03% over the previous close, as reported alongside the disclosure. Separately, the coverage around the OFS referenced a floor price of Rs 31 per share for the government’s sale. Another report line also said the OFS aims to raise over Rs 2,200 crore. The same set of updates noted that investor demand was strong, leading to an increase in the stake sale from 4% to 8%. These points are relevant for tracking market context, even as the bank’s filing itself primarily focused on the expanded share count and investor category reservations.

Key facts at a glance

Why the disclosures matter for investors

LIC’s purchase is notable because it is a large incremental buy executed through market purchases on a single day, May 22, and it takes the insurer’s holding above 6%. At the same time, the government’s decision to expand the OFS to 8% provides a clearer picture of potential changes to the free float and public shareholding. The phased bidding windows and the reserved portions for retail investors and employees outline who gets access to the sale and when. For market participants, these details help frame near-term supply and demand dynamics around the stock without relying on speculation.

Conclusion

Central Bank of India’s filings confirm two clear developments: LIC increased its stake to 6.06% after acquiring 26.26 crore shares on May 22, and the government expanded the ongoing OFS by fully exercising the oversubscription option, lifting the total sale to 8%. The next key date in the OFS timeline is May 25, when retail investors and eligible employees can participate, along with non-retail investors carrying forward unallotted bids from T-day.