The Government of India has announced that it will divest up to 6% stake in state-owned Bank of Maharashtra (BoM), aiming to raise around ₹2,600 crore via an Offer for Sale (OFS).
🧾 What’s the plan
- The OFS will begin on 2 December 2025 for non-retail investors and on 3 December 2025 for retail investors.
- The divestment will comprise a 5% base offer, with an additional 1% as a green-shoe option, allowing for a total stake sale of up to 6%. NDTV Profit
- The floor price for the OFS has been fixed at ₹54 per share, which is a discount relative to the bank’s recent market price (~₹57.65).
📉 Why this stake sale — and what it means
- As of the end of September quarter 2025, the government held 79.60% stake in BoM.
- Selling up to 6% will reduce its ownership to below 75%, helping the bank meet the minimum public shareholding requirement of 25% under securities regulations.
- The move aligns with broader efforts to increase public float in public-sector banks.
🏦 Background on Bank of Maharashtra
- Bank of Maharashtra is a major public-sector lender, headquartered in Pune. As of June 2025, it operates 2,641 branches across India
- Through the OFS, the bank could receive increased participation from institutional and retail investors — potentially enhancing liquidity and market dynamics for its shares.
✅ What to Watch
- Investor response during the OFS — high subscription may reflect confidence in BoM’s shares; weak response could hint at broader concerns about PSU banks.
- How the reduced government stake affects BoM’s governance, strategic direction, and minority-shareholder influence.
- Performance of BoM post-divestment: financial indicators such as asset quality, profitability and growth will be under scrutiny to justify the stake sale.
