Government to Increase Bank of Maharashtra Stake Sale to 6% Following Massive Investor Demand
New Delhi, December 2, 2025 - The indian government will exercise its green shoe option to divest a total of 6% stake in Bank of Maharashtra following a highly triumphant Offer for Sale (OFS) that saw over 400% subscription in the non-retail segment. Investors will bid tomorrow, December 3, 2025, for the additional shares.
The initial offer comprised a 5% stake, with a 1% green shoe option – allowing for an increase in the sale if demand exceeded expectations. The strong investor response “reflects strong investor confidence in the public sector banks and robustness of Indian banking sector,” according to Financial Services Secretary M Nagaraju in a post on X.
At the floor price of Rs 54 per share – a 6.34% discount from Monday’s closing price of Rs 57.66 on the BSE – the government is expected to raise approximately Rs 2,492 crore.
The base offer includes 38.46 crore shares (5% of the bank’s paid-up equity), with an additional 7.69 crore shares (1%) available under the green shoe option, bringing the total to over 46.14 crore shares, or 6% of the lender.
The stake dilution will help Bank of Maharashtra meet the minimum public shareholding (MPS) norm of 25% mandated by the Securities and Exchange board of India (SEBI).Currently, the government holds a 79.60% stake in the Pune-based bank. SEBI has granted CPSEs and public sector financial institutions forbearance on the MPS rule until August 2026.
Other public sector lenders where the government holds a stake exceeding the 25% threshold include Indian Overseas Bank (94.6%), Punjab & Sind Bank (93.9%),UCO Bank (91%),and Central Bank of India (89.3%).
