New Delhi, 2 December (H.S.): The government on Tuesday launched the Offer for Sale (OFS) of its equity in the public sector lender, Bank of Maharashtra (BoM), for non-retail investors at a floor price of Rs 54 per share. Through this stake sale, the government plans to offload up to 6 percent of its shareholding in the bank and raise approximately Rs 2,492 crore.

According to the offer document, the OFS will open for retail investors on Wednesday. The floor price of Rs 54 per share is 6.34 percent lower than the bank’s closing price of Rs 57.66 per share on the Bombay Stock Exchange (BSE) on Monday. The government currently holds a 79.60 percent stake in the Pune-headquartered lender.

The base offer comprises 38.45 crore shares, representing a 5 percent stake in the bank’s paid-up equity capital. In addition, an option to sell another 7.69 crore shares—equivalent to 1 percent stake—is available under the “green shoe” option, taking the total offer size to 46.14 crore shares, or 6 percent of the bank’s total equity.

Following the completion of the OFS, the government’s stake in the bank will fall below 75 percent, enabling the lender to meet the minimum public shareholding norm of 25 percent prescribed by the Securities and Exchange Board of India (SEBI).

The OFS is being conducted in accordance with SEBI’s Securities Contracts (Regulation) Rules, which mandate all listed companies, including public sector undertakings, to maintain at least 25 percent public shareholding.

Apart from Bank of Maharashtra, the government’s equity holding in several other public sector banks—such as Indian Overseas Bank (94.6 percent), Punjab and Sind Bank (93.9 percent), UCO Bank (91 percent), and Central Bank of India (89.3 percent)—also exceeds the minimum public shareholding threshold. SEBI has granted an extension to Central Public Sector Enterprises (CPSEs) and state-owned financial institutions until August to comply with the norm.

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Hindusthan Samachar / Jun Sarkar