Govt To Divest 6 Per Cent Stake In Bank Of Maharashtra After OFS Sees 400 Pc Subscription; Nearly ₹2,500 Crore Expected

New Delhi, Dec 2: Government on Tuesday decided to exercise green shoe option and will divest 6 per cent stake in state-owned Bank of Maharashtra (BoM) through Offer for Sale (OFS) following overwhelming response from investors on the first day of subscription.

OFS Opens for Non-Retail Investors

The OFS of BoM opened for subscription earlier on Tuesday for non-retail investors at a floor price of Rs 54 per share.

Massive Oversubscription on Day One

On the first day, it subscribed 400 per cent of the base size 38,45,77,748 shares triggering exercise of green shoe option of additional 1 per cent.

DIPAM Secretary Confirms Move

"Offer for sale in Bank of Maharashtra received overwhelming response in the markets today. The issue was subscribed to 400 per cent 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.

Retail Investors to Bid on December 3

"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.

Government to Raise Nearly Rs 2,500 Crore

At the floor price the government would mop up about Rs 2,492 crore by divesting its 6 per cent stake in the state-owned lender.

OFS Pricing and Structure

The floor price for the Bank of Maharashtra OFS has been set at Rs 54 per share, reflecting a 6.34 per cent 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 per cent of paid up equity share capital of the Bank, with an additional 7,69,15,549 shares, or 1 per cent stake, available under the green-shoe option, taking the total to over 46.14 crore shares, or 6 per cent of the stake in the Pune-based lender.

Stake to Fall Below 75%

The government currently holds a 79.60 per cent stake in the Pune-based bank. With the stake dilution, the bank would be able to meet the minimum public shareholding norm of 25 per cent as the government stake will come down below 75 per cent.

Regulatory Compliance Requirement

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 per cent.

Deadline for PSUs Extended to 2026

Capital market regulator Sebi has given forbearance to CPSEs and public sector financial institutions till August 2026.

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Other Banks Above Threshold

Other four lenders where the government's stake is more than minimum public shareholding threshold are Indian Overseas Bank at 94.6 per cent, Punjab & Sind Bank 93.9 per cent, UCO Bank 91 per cent, and Central Bank of India 89.3 per cent.

(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)