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The government has launched an Offer for Sale (OFS) of Bank of Maharashtra shares, setting a floor price of INR 54. By selling a 6% stake, it expects to raise about INR 2,492 crore. The offer includes a base sale of 5% equity and an additional 1% through a green-shoe option, with retail participation opening soon. The floor price is a 6.34% discount to the previous BSE close. The government currently owns 79.60% of the bank, and this sale will help bring its holding below 75%, moving the lender closer to the 25% public shareholding requirement. Several other state-owned banks also remain above this limit.
The government opened the Offer for Sale (OFS) of Bank of Maharashtra for non-retail investors earlier this week, setting a floor price of INR 54 per share. At this price, the government is expected to raise around INR 2,492 crore by selling a 6% stake in the state-owned lender. The share sale for retail investors is scheduled to begin shortly, according to the prospectus. Advertisement
The floor price reflects a 6.34% discount from the previous day's closing price of INR 57.66 on the BSE. The base offer includes 38,45,77,748 shares, representing 5% of the bank's paid-up equity capital. An additional 7,69,15,549 shares, or 1% stake, are available under the green-shoe option, taking the total shares on offer to over 46.14 crore, or 6% of the bank's equity.
The government currently holds a 79.60% stake in the Pune-based lender. With the planned stake sale, the bank will meet the minimum public shareholding requirement of 25%, as the government's holding will drop below 75%. This aligns with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India (SEBI), which require all listed companies, including public sector entities, to maintain at least 25% public shareholding.
SEBI has provided an extended timeline for central public sector enterprises (CPSEs) and public sector financial institutions to meet this requirement, allowing compliance until August 2026. Other state-owned banks where government holdings exceed the minimum threshold include Indian Overseas Bank at 94.6%, Punjab & Sind Bank at 93.9%, UCO Bank at 91%, and Central Bank of India at 89.3%.
Source PTI
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