Bank of Maharashtra OFS: Govt Offloads Stake

New Delhi, Dec 2 (PTI) The Offer for Sale (OFS) of Bank of Maharashtra opened on Tuesday for non-retail investors at a floor price of Rs 54 per share.

At the floor price the government would mop up about Rs 2,492 crore by divesting its 6 per cent stake in the state-owned lender.

The OFS will open for retail investors on Wednesday, as per the prospectus of the share sale.

The floor price for the Bank of Maharashtra OFS has been set at Rs 54 per share, reflecting a 6.34 per cent discount from its Monday's closing price of Rs 57.66 apiece on the BSE.

The base offer comprises 38,45,77,748 shares, representing 5 per cent of paid up equity share capital of the Bank, with an additional 7,69,15,549 shares, or 1 per cent stake, available under the green-shoe option, taking the total to over 46.14 crore shares, or 6 per cent of the stake in the Pune-based lender.

The government currently holds a 79.60 per cent stake in the Pune-based bank.

With the stake dilution, the bank would be able to meet the minimum public shareholding norm of 25 per cent as the government stake will come down below 75 per cent.

This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which mandate that all listed companies, including those in the public sector, must have a minimum public shareholding of 25 per cent.

Capital market regulator Sebi has given forbearance to CPSEs and public sector financial institutions till August 2026.

Other four lenders where the government's stake is more than minimum public shareholding threshold are Indian Overseas Bank at 94.6 per cent, Punjab & Sind Bank 93.9 per cent, UCO Bank 91 per cent, and Central Bank of India 89.3 per cent.