The Offer for Sale (OFS) of Bank of Maharashtra (BoM) opened today, December 2, 2025, for non-retail investors, with retail investors able to bid on Wednesday, December 3, 2025. The government plans to divest up to 6% of its stake in the state-owned bank through this OFS route.

Issue Size and Stake Details

The OFS comprises a base offer of 384,577,748 shares, representing 5% of the total issued and paid-up equity share capital of the bank. An additional 76,915,549 shares, constituting 1% of the stake, are available under the green-shoe option. This brings the total offer size to over 461.4 million shares, or 6% of the PSU bank's stake. The government currently holds a 79.60% stake in Bank of Maharashtra. The stake sale is expected to bring the government's shareholding below 75%, enabling the bank to meet the Securities and Exchange Board of India's (SEBI) minimum public shareholding requirement of 25%.

Floor Price and Potential Proceeds

The floor price for the Bank of Maharashtra OFS is set at ₹54 per share. This represents a discount of 6.34% from Monday's closing price of ₹57.66 apiece on the BSE. At this floor price, the government anticipates raising over ₹2,600 crore through the OFS. Some reports suggest the stake sale could fetch approximately ₹2,500 crore. Based on the 5% stake alone, the sale could generate around ₹1,800 crore for the government.

Strategic Rationale

The government's decision to divest its stake in Bank of Maharashtra aligns with the mandate from SEBI that all listed companies, including those in the public sector, maintain a minimum public shareholding of 25%. SEBI has granted forbearance to CPSEs and public sector financial institutions until August 2026 to meet this requirement.

Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), announced the OFS opening on X, stating that the government would disinvest 5% equity with an additional 1% green shoe option.

Bank of Maharashtra Performance

In the past five years, Bank of Maharashtra's share price has delivered multibagger returns of 353%. The bank reported a 23% growth in its standalone net profit, reaching ₹1,633 crore in Q2 FY26. On Monday, Bank of Maharashtra shares closed at ₹57.70, giving the lender a valuation of ₹44,350 crore. The stock traded flat on Tuesday as the OFS opened.

Impact and Context

Following the stake sale, Bank of Maharashtra will be able to meet the minimum public shareholding requirement of 25%. Other lenders where the government's stake exceeds the minimum public shareholding threshold include Indian Overseas Bank, Punjab & Sind Bank, UCO Bank, and Central Bank of India. In October 2024, Bank of Maharashtra raised ₹3,500 crore via qualified institutional placement (QIP).