LIC Buys 26.26 Crore Shares, Takes Central Bank of India Stake To 6.06%

State-owned insurance giant Life Insurance Corporation of India (LIC) has increased its shareholding in Central Bank of India to 6.06%, up from 3.16%, following a fresh acquisition of 26.26 crore equity shares through an open market purchase.

In a regulatory filing submitted to stock exchanges on 25 May, the Central Bank of India said LIC acquired 2.901% stake in the lender on 22 May 2026. With this transaction, LIC’s total holding in the public sector bank rose to 6.06% of the paid-up equity capital.

LIC’s Stake Increase Comes Amid Government OFS

The purchase comes at a time when the Central Bank of India remains in focus amid the government’s ongoing stake sale in the lender through an Offer for Sale (OFS).

The Government of India had last week launched an OFS to divest up to 8% stake in the Central Bank of India. The issue initially opened with a 4% base offer, with an additional 4% green-shoe option after strong investor demand. The OFS was reportedly subscribed to 2.36 times, reflecting healthy market interest.

Following LIC’s latest acquisition, the insurer has more than doubled its stake in the bank, adding nearly 2.9 percentage points in a single market transaction.

Central Bank Of India Shares Remain In Focus

Central Bank of India shares settled at ₹31.29 apiece on the Bombay Stock Exchange on Monday, marginally lower by 0.03% compared with the previous close. The stock had seen volatility in recent sessions after the OFS announcement, including a sharp 7.7% decline on 22 May when the stake sale was launched.

LIC is one of India’s largest institutional investors and holds stakes across banking, financial services and blue-chip companies. Its increased exposure to the Central Bank of India signals continued institutional interest in public sector banking stocks despite recent market fluctuations.

The Central Bank of India is one of the country’s oldest public sector lenders. However, it has been under investor watch due to the government’s gradual disinvestment efforts and capital market activity.

LIC Continues To Raise Exposure to PSU Banks

The move also comes against the backdrop of LIC steadily raising holdings in state-run lenders. In May 2025, the insurer had increased its stake in Bank of India to 8.38%.

Also Read - Government Prepares FY27 Divestment Drive With OFS In Coal India, LIC, IOB And IRFC

Sources:

Economic Times

ETCFO