Bank of Maharashtra OFS Oversubscribed: Rs 2,492 Cr Raised

New Delhi, Dec 3 (PTI) With the oversubscription of the offer-for-sale (OFS) of state-owned Bank of Maharashtra, the government is expected to realise about Rs 2,492 crore by diluting its 6 per cent stake in the bank.

With the allotment of shares, the Pune-based lender would become Minimum Public Shareholding compliant with the Sebi norms.

The OFS of Bank of Maharashtra closed for subscription Wednesday at a floor price of Rs 54 per share. At this price, the government would mop up about Rs 2,492 crore by divesting its 6 per cent stake in the lender.

Prior to the OFS, the government's holding in the bank was 79.60 per cent. With the stake dilution to 73.6 per cent, the bank would be able to meet the MPS norm of 25 per cent as the government stake would come below 75 per cent.

"The second day of Bank of Maharashtra OFS closed with good interest from investors and 1.72 times subscription. With this, the Bank is now Minimum Public Shareholding compliant. We thank all investors for their participation," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

The government on Tuesday decided to exercise green shoe option by offloading additional 1 per cent stake in the bank.

The base offer comprised 38.46 crore shares, representing 5 per cent of paid up equity share capital of the bank, with an additional 7.69 crore 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 lender.

The stake dilution was 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.