Government to divest up to 6% stake in Bank of Maharashtra; retail bidding on Dec 3
The offer will open on Tuesday for non-retail investors, while retail investors can bid on Wednesday
- Dec 1, 2025,
- Updated Dec 1, 2025 6:54 PM IST
The government has offered to disinvest 6% equity in Bank of Maharashtra, the Department of Investment and Public Asset Management (DIPAM) announced on Monday.
The offer will open tomorrow (Tuesday, Dec 2) for non-retail investors, while retail investors can bid on Wednesday. "Government offers to disinvest 5% equity in the bank with an additional 1% as a green shoe option," the department said.
At the current market price, the government would be able to garner about Rs 2,600 crore by offloading up to 6 per cent stake in the bank.
The government's proposed stake sale is aimed at bringing the lender closer to the mandated 25 per cent public shareholding requirement. The Centre held 79.60 per cent in the bank as of September 2025, and an offer for sale of up to 5 per cent would bring its holding below 75 per cent.
Bank of Maharashtra slipped 1.47 per cent to Rs 57.70 on Monday, pushing its market capitalisation below Rs 45,000 crore. The PSU lender had touched a 52-week high of Rs 61.55 on November 19, 2025, and remains up 54 per cent from its 52-week low of Rs 38.11 in April 2024.
Like some other PSU banks, Bank of Maharashtra has been exempted from meeting the minimum public shareholding norm for now. Under listing rules, all listed companies are required to raise public shareholding to 25 per cent within three years of listing or relisting.
Among major shareholders, LIC owns more than 7.10 per cent, while mutual funds and banks hold 1.17 per cent and 0.57 per cent, respectively. Over 9.58 lakh retail investors together hold 6.83 per cent of the lender as of September 30, 2025.
Bank of Maharashtra had completed a Rs 3,500-crore qualified institutional placement in October 2024 to strengthen capital buffers and move toward meeting public float requirements.
The government has offered to disinvest 6% equity in Bank of Maharashtra, the Department of Investment and Public Asset Management (DIPAM) announced on Monday.
The offer will open tomorrow (Tuesday, Dec 2) for non-retail investors, while retail investors can bid on Wednesday. "Government offers to disinvest 5% equity in the bank with an additional 1% as a green shoe option," the department said.
At the current market price, the government would be able to garner about Rs 2,600 crore by offloading up to 6 per cent stake in the bank.
The government's proposed stake sale is aimed at bringing the lender closer to the mandated 25 per cent public shareholding requirement. The Centre held 79.60 per cent in the bank as of September 2025, and an offer for sale of up to 5 per cent would bring its holding below 75 per cent.
Bank of Maharashtra slipped 1.47 per cent to Rs 57.70 on Monday, pushing its market capitalisation below Rs 45,000 crore. The PSU lender had touched a 52-week high of Rs 61.55 on November 19, 2025, and remains up 54 per cent from its 52-week low of Rs 38.11 in April 2024.
Like some other PSU banks, Bank of Maharashtra has been exempted from meeting the minimum public shareholding norm for now. Under listing rules, all listed companies are required to raise public shareholding to 25 per cent within three years of listing or relisting.
Among major shareholders, LIC owns more than 7.10 per cent, while mutual funds and banks hold 1.17 per cent and 0.57 per cent, respectively. Over 9.58 lakh retail investors together hold 6.83 per cent of the lender as of September 30, 2025.
Bank of Maharashtra had completed a Rs 3,500-crore qualified institutional placement in October 2024 to strengthen capital buffers and move toward meeting public float requirements.