Bank of Maharashtra OFS: Government to Offload 6% Stake to Meet SEBI Norms
The Government of India has announced a major stake sale in Bank of Maharashtra (BoM) through an Offer for Sale (OFS), opening on Tuesday for non-retail investors, while retail investors can participate on Wednesday. This move is aimed at meeting SEBI’s public shareholding rules and strengthening market participation in the state-run lender.
According to estimates based on the current market price, the government is expected to raise around ₹2,600 crore by diluting up to 6% stake in the bank.
The OFS includes:
- Total shares on offer: 46.15 crore
- Base offer: 38.5 crore shares
- Green-shoe option: 7.7 crore shares
- Floor price: ₹54 per share
This is a discount of over 6% from Monday’s closing price of ₹57.70 on the NSE.
DIPAM Secretary Arunish Chawla confirmed the details through a post on X, noting that the government will divest 5% stake, with an additional 1% green-shoe option.
Govt Holding to Fall Below 75%
The Centre currently holds 79.60% stake in Bank of Maharashtra. After this stake sale, the government’s holding will come below the 75% mark, helping the bank move closer to SEBI’s mandatory 25% minimum public shareholding norm.
SEBI has given central public sector enterprises (CPSEs) time until August 2026 to comply with the requirement.
Bank of Maharashtra has already taken steps in this direction — including a ₹3,500-crore QIP in October 2024 to strengthen capital buffers and accelerate progress toward meeting the public shareholding mandate.
Stock Performance and Market Context
Bank of Maharashtra’s shares closed 1.6% lower on Monday, ahead of the OFS announcement. However, the stock has gained 10.5% so far in 2025, reflecting strong investor interest in public sector banks.
PSU banks have been in the spotlight recently after Finance Minister Nirmala Sitharaman indicated that the government has begun work on the next phase of bank consolidation, which could reshape the PSU banking landscape.
Apart from Bank of Maharashtra, four other state-run banks still have government holdings above the mandated public shareholding threshold:
- Indian Overseas Bank: 94.6%
- Punjab & Sind Bank: 93.9%
- UCO Bank: 91%
- Central Bank of India: 89.3%
These banks also need to bring down government stake levels to comply with SEBI norms before the August 2026 deadline.
Why This OFS Matters
This stake sale is not just a regulatory formality — it’s an important step in:
- Improving liquidity in the PSU banking sector
- Attracting more public and institutional investors
- Strengthening governance and transparency
- Supporting upcoming consolidation plans
For investors, the discounted OFS price may offer an opportunity to enter the stock at relatively lower levels.