Govt to Offload Up to 6% Stake in Bank of Maharashtra, Aims to Garner ₹2,600 Crore

The government has decided to divest up to 6% stake in state-owned Bank of Maharashtra through an Offer for Sale commencing on Tuesday.

At the current market price, the government would be able to garner about ₹2,600 crore by offloading up to 6% stake in the bank.

"Offer for Sale in Bank of Maharashtra (BOM) opens tomorrow for Non-Retail investors. Retail investors can bid on Wednesday. Government offers to disinvest 5% equity in the bank with an additional 1% as a green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

The government currently holds a 79.60% stake in the Pune-based bank.

With the stake dilution, the bank would be able to meet the minimum public shareholding norm of 25% as the government stake will come down below 75%.

This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which mandate that all listed companies, including those in the public sector, must have a minimum public shareholding of 25%.

Capital market regulator Sebi has given forbearance to CPSEs and public sector financial institutions till August 2026.

Other four lenders where government's stake is more than minimum public shareholding threshold are Indian Overseas Bank at 94.6%, Punjab & Sind Bank 93.9%, UCO Bank 91%, and Central Bank of India 89.3%.