The share price of Bank of Maharashtra remained largely unchanged on Tuesday as the government's offer for sale (OFS) for the public sector lender opened for subscription. The Centre plans to divest up to a 6% stake in the bank through this route, a move expected to fetch over ₹2,600 crore at current market valuations.
Key Details of the Bank of Maharashtra OFS
Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), announced the schedule on social media platform X. The OFS opened for non-retail investors on Tuesday, 2 December 2025. Retail investors will get their opportunity to bid on Wednesday, 3 December 2025.
The government is offering a base size of 5% of the bank's equity, which translates to approximately 38.46 crore shares. Additionally, there is a green-shoe option to sell another 1% stake, or about 7.69 crore shares. In total, the offer could involve over 46.14 crore shares, representing a 6% stake.
The floor price for the offer has been set at ₹54 per share. This represents a discount of roughly 6.34% compared to the stock's closing price of ₹57.66 on the BSE on Monday.
Meeting SEBI's Public Shareholding Norms
This divestment is a strategic step towards complying with the Securities and Exchange Board of India's (SEBI) mandate. SEBI rules require all listed entities to maintain a minimum public shareholding of 25%. The government currently holds a commanding 79.60% stake in the Pune-based bank.
Post this OFS, the government's holding will drop below 75%, allowing Bank of Maharashtra to finally meet the minimum public shareholding requirement. SEBI has granted public sector companies and financial institutions a forbearance period until August 2026 to achieve this compliance.
Bank of Maharashtra is among several public sector banks where the government's stake exceeds the threshold. Others include:
- Indian Overseas Bank (94.6%)
- Punjab & Sind Bank (93.9%)
- UCO Bank (91%)
- Central Bank of India (89.3%)
Stock Performance and Market Reaction
The market reaction on the OFS opening day was muted. In early trade, Bank of Maharashtra shares were trading marginally lower by 0.47% at ₹57.39 on the BSE. The stock's performance has been mixed across different timeframes.
While it has declined by 3% over the past month, it has posted gains of 9% in three months and 8.5% on a year-to-date basis. The longer-term view is notably bullish, with the stock delivering a remarkable 353% return to investors over the past five years, classifying it as a multibagger.
This OFS represents a significant liquidity event for the government and a chance for investors to increase their holding in a PSU bank that has demonstrated strong long-term growth.
