Government Today launched the offer for sale (OFS) of Bank of Maharashtra to raise Rs 2492 crore. This sale offer has been launched for non-retail investors at a minimum price of Rs 54 per share. The government will raise approximately Rs 2492 crore by selling 6 percent stake in this government bank. According to the share sale prospectus, the OFS will open for retail investors on Wednesday. The floor price for Bank of Maharashtra’s OFS has been set at Rs 54 per share, which is 6.34 per cent lower than Monday’s closing price of Rs 57.66 per share on BSE. On Tuesday, shares of Bank of Maharashtra closed at Rs 57.61.
Government holds 79.60 percent stake in Bank of Maharashtra
The base offer comprises 38,45,77,748 shares, which is 5 per cent of the paid-up share capital of the bank. Apart from this, 7,69,15,549 shares or one per cent stake is available under the ‘green-shoe’ option. This takes its total size to 46.14 crore shares or 6 percent stake. The government currently holds 79.60 percent stake in this Pune-based government bank. Diluting this stake in the bank will enable Bank of Maharashtra to meet the minimum public shareholding requirement of 25 per cent, as the government stake will be reduced from 75 per cent. This is in accordance with the Securities Contracts (Regulation) Rules issued by the Securities and Exchange Board of India.
Government will also sell stake in 4 other government banks
As per rules, at least 25 percent public shareholding is mandatory in all listed companies, including public sector companies. Capital markets regulator SEBI has given exemption to CPSEs and public sector financial institutions till August 2026. Besides, the government’s stake in four other banks – Indian Overseas Bank (94.6 per cent), Punjab and Sind Bank (93.9 per cent), UCO Bank (91 per cent) and Central Bank of India (89.3 per cent) – is well above the minimum public shareholding limit.
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