Bank of Maharashtra Shares: The Government of India has decided to sell its 6 percent stake in Bank of Maharashtra through Offer for Sale (OFS). Even today, as soon as the offer-for-sale opened for retail investors, the shares fell by about 2 percent. Bank of Maharashtra shares continue to fall for the fifth consecutive day. The process of selling shares has started from December 2, in which retail investors took part today.
Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), which comes under the Union Finance Ministry, had said on Twitter, “The offer-for-sale in Bank of Maharashtra (BOM) has opened for non-retail investors today. Retail investors will be able to place bids on Wednesday (December 3). The government will sell 5 per cent equity in the bank and has also offered an additional 1 per cent as a green shoe option.” DIPAM said that OFS was subscribed 400 percent against the base size.
What is the government’s stake in the bank?
The government has fixed the floor price for this offer-for-sale at Rs 54 per share. The base offer value at the current market price is around Rs 2,200 crore, and the green shoe option could fetch the government an additional amount of around Rs 400 crore.
According to shareholding data available for the quarter ending September 2025, the central government holds 612.26 crore shares or 79.6 percent stake in Bank of Maharashtra. The remaining 156.89 crore shares, or 20.4 percent stake, are held by public shareholders.
OFS will help the government to reduce its stake in the bank by 75 percent. With this, public shareholding will go above 25 percent, which is as per the rules of Securities and Exchange Board of India. Public shareholding means how many shares of the bank are held by the general public. If it goes above 25 percent, it means that no person or any institution has much control over it.
PSU bank stocks boom
Meanwhile, Minister of State for Finance Pankaj Chaudhary said in Parliament on Tuesday that the government is not considering the proposal to increase the FDI limit for PSU banks. After his statement, PSU bank shares crashed on Wednesday, in which Indian Bank shares had the biggest fall of 6 percent.
Besides, Bank of Maharashtra, Punjab National Bank, Bank of India, Canara Bank, Bank of Baroda, Central Bank of India, Union Bank, Punjab & Sind Bank and UCO Bank declined by up to 2 per cent each. Meanwhile, the Nifty PSU Bank index also slipped by 3 per cent to an intraday low of 8,264 points—about 5 per cent below its recent high of 8,665 points.
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