- Government to divest 6% stake in Bank of Maharashtra through Offer for Sale
- OFS subscribed 400% on first day, triggering exercise of 1% green shoe option
- Floor price set at Rs 54, a 6.34% discount from Monday’s closing price
Government on Tuesday decided to exercise green shoe option and will divest 6% stake in state-owned Bank of Maharashtra (BoM) through Offer for Sale (OFS) following overwhelming response from investors on the first day of subscription. The OFS of BoM opened for subscription earlier on Tuesday for non-retail investors at a floor price of Rs 54 per share.
On the first day, it subscribed 400% of the base size 38,45,77,748 shares triggering exercise of green shoe option of additional 1%.
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'Offer for sale in Bank of Maharashtra received overwhelming response in the markets today. The issue was subscribed to 400% of the base size. The government has decided to exercise the green shoe option,' Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.
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'Retail investors get to bid tomorrow on 3rd December 2025. Congratulations to the staff and leadership at the Bank of Maharashtra for outstanding financial performance over the last few years. Keep it going...,' he said.
At the floor price the government would mop up about Rs 2,492 crore by divesting its 6% stake in the state-owned lender. The floor price for the Bank of Maharashtra OFS has been set at Rs 54 per share, reflecting a 6.34% discount from its Monday's closing price of Rs 57.66 apiece on the BSE.
The base offer comprises 38,45,77,748 shares, representing 5% of paid up equity share capital of the Bank, with an additional 7,69,15,549 shares, or 1% stake, available under the green-shoe option, taking the total to over 46.14 crore shares, or 6% of the stake in the Pune-based lender.
The government currently holds a 79.60% stake in the Pune-based bank. With the stake dilution, the bank would be able to meet the minimum public shareholding norm of 25% as the government stake will come down below 75%.
This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which mandate that all listed companies, including those in the public sector, must have a minimum public shareholding of 25%. Capital market regulator Sebi has given forbearance to CPSEs and public sector financial institutions till August 2026.
Other four lenders where the government's stake is more than minimum public shareholding threshold are Indian Overseas Bank at 94.6%, Punjab & Sind Bank 93.9%, UCO Bank 91%, and Central Bank of India 89.3%.
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