Government Plans to Divest Up To 6% In Bank of Maharashtra Through OFS

Tuesday, December 1, 2025: The Centre has started to divest up to 6% of the stake in Bank of Maharashtra by an Offer for Sale (OFS) today. While the non-retail investors will begin investing today the retail investors will be able to join on December 3. The government will provide a base of 5% equity with 1% green-shoe as per the market need of the investor as has been reported by DIPAM (Department of Investment and Public Asset Management) Secretary Arunish Chawla. This intended sale is also in line with the overall government move to divest its holding in the state sector banks and increase market penetration.

Expected Proceeds and Pricing of the Offer

The price of the OFS will be fixed to the floor price of ₹54 per share which is lower than the current trading price of the bank of ₹58.16. According to the prevailing market value, the government will rake almost 2,600 crore in case the entire 6% portion is sold. The competitive price is supposed to attract a good reaction among institutional and retail investors in enhancing the public float of the bank and fulfilling the regulations.

Implication on Government’s Shareholding

As of the September quarter, the government presently possesses 79.60% of the equity in Bank of Maharashtra. When this OFS is completed the stake of the bank will be less than 75% hence the bank will be able to meet the 25% minimum shareholding requirement of its minimum share. This initiative will aid the long-term plan of the Centre to progressively decrease the ownership of the state-owned banks and promote the involvement of additional investors and increase corporate governance.

Share Price Movement and Market Reaction

Bank of Maharashtra shares are currently trading at 11:45 AM at 0.94% higher than its previous close. This price is marginally higher than the stipulated price of its OFS. The stock opened at ₹56.39 and has been ranging between ₹58.80 and ₹56.10 so far. Financial resources thinks that the price difference between the floor price and market value could contribute to the investor interest in the course of the OFS window.

An Upgrade in Government Disinvestment Plan

The government is putting immense efforts to reduce its ownership in public enterprises and this disinvestment seems as a milestone in manifesting to do so. The Offer for Sale will indicate investor interest and the revenue generated for the government in forthcoming days. It also serves as a key indicator of the market’s appetite for public sector banking stocks. The government desires to advance reformation in banking and finance sectors therefore it remains determined to its strategy of reducing its shareholdings in this industry.

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