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The government is selling 5 to 6 percent stake in Bank of Maharashtra through OFS and the floor price is fixed at Rs 54. Subscription opportunity for retail investors is opening from today. After selling 6 percent stake, the government’s stake in the bank will be reduced to less than 75 percent. This will help the bank to comply with SEBI’s minimum public shareholding rules.
The government has come up with OFS i.e. Offer for Sale to sell its stake in Government Bank of Maharashtra. On Tuesday, this issue was open only for big investors i.e. non-retail. It also got a strong response from non-retail. It has been subscribed four times the base size i.e. 400%.
This OFS has opened for retail investors from today 3rd December. The performance of the bank is going well, hence many people are looking to buy it cheaply. The government decided to use the green shoe option, that is, more money will be raised by selling more shares in Bank of Maharashtra.
How can retail investors subscribe?
- If you are a common retail investor and want to participate in OFS of Bank of Maharashtra, then there is a very easy way to do it.
- First of all open your trading or demat account, you can open your demat account from any broker (Zerodha, Angel, Upstox or any bank).
- After login, you have to find the OFS section or corporate action option. Go there and search the name of Bank of Maharashtra and click.
- Now the most important thing is to select “Retail” in the category, because this retail day is only for common investors. Then you have to enter how many shares you want and at what price.
- The price can be set at or above the floor price i.e. the lowest fixed price, it cannot be set below.
- After this place the bid, for this the money should already be in the account.
- If you get allotment then the shares will come in your demat.
- Before bidding, check all the details carefully like how many shares, at what price. If everything looks good then submit it. After that there will be a small authorization process, once it is completed you will be subscribed.
But remember, the trading account must already have sufficient funds in the bank, otherwise the subscription will be rejected.
Retailers can also make more than one bid, i.e. at different prices or in different quantities. The only condition is that the amount of money you are bidding for should be in the account. The more bids you place, the greater your chances of getting allotment.
If there is too much bidding in OFS i.e. oversubscription, then it is possible that you may not get as many shares as you had asked for. In such a situation, the remaining money will automatically be returned to your account, just like an IPO. Therefore, there is no need to worry, the money saved can be used from the next day itself. You can change or increase or decrease your bids as many times as you want throughout the day, there is no limit on this.
condition of bank shares
The government wants to sell its stake in Bank of Maharashtra up to 5 percent so that the bank fits into the minimum rules of public shareholding. Now the government has also decided to use the green shoe option, that is, if the share of common investors (retail) is also completely filled, then a total of 6 percent share will be sold. With this, bank rules will be followed and more shares will be available in the market. After OFS, the government’s holding in Bank of Maharashtra will increase from 79.6 percent to 73.6 percent. The floor price of OFS has been fixed at Rs 54 per share. The shares of this bank have increased by 10.5 percent in 2025. Shares of Bank of Maharashtra closed at Rs 57.61 on Tuesday with minor changes. Today on Wednesday, the shares of this bank are trading at Rs 56.50 on Sensex with a fall of 1.93% at 2:08 minutes.
