Bank of Maharashtra OFS explained: How retail investors can participate in it

Retail investors can participate in Bank of Maharashtra’s offer-for-sale (OFS), which opens for them on Wednesday, 3 December. The OFS follows the window for non-retail investors, which took place on Tuesday and witnessed a robust response, with the issue subscribed 400 per cent over the base size, according to the Department of Investment and Public Asset Management (DIPAM)'s communication.

As per the DIPAM post on social media, "Government has decided to exercise the green shoe option," reflecting the strong demand for the OFS among non-retail investors. This move allows the government to sell additional shares over and above the original offer, provided there is sufficient demand.


How to Partcipate in Bank of Maharashtra OFS

To participate, retail investors must access their trading or demat account via their broker and navigate to the OFS or Corporate Actions section. They should select Bank of Maharashtra’s OFS and then choose the "retail" category, after which they place their bids by specifying both the number of shares and the bid price. The price must be at or above the floor price of Rs 54 per share.

It is essential for investors to ensure they have sufficient funds in their account before submitting a bid, as bids without an adequate balance will be rejected. Multiple bids are permitted if there are enough funds, and bids can be altered any number of times throughout the day. Once authorised, the bid is placed.

In the event of oversubscription, retail investors might not receive the full number of shares they bid for. For instance, if an investor bids for 100 shares but receives only 50, the remaining funds will be refunded to their account, mirroring the process followed in IPOs.


Objective of OFS

The government has announced its plan to divest up to 5 per cent of its stake in Bank of Maharashtra, aiming to comply with Minimum Public Shareholding norms. With the green shoe option being exercised, the total government stake divestment could reach 6 per cent, provided the retail segment is also fully subscribed. Following the OFS, government shareholding will reduce from 79.6 per cent to 73.6 per cent.
 

Bank of Maharashtra share performance

The floor price for the OFS is set at Rs 54 per share. Shares of Bank of Maharashtra ended little changed on Tuesday, closing at Rs 57.61 ahead of the retail OFS opening. Investors can place and revise their bids throughout the day, making the process accessible and flexible for those seeking to participate.

Bank of Maharashtra (BoM), established in 1935, is one of India's leading public sector banks, offering a wide range of banking and financial services. The bank plays a vital role in supporting small and medium enterprises (SMEs) and has a significant footprint in rural and semi-urban areas.
 

Bank of Maharashtra target price

Bank of Maharashtra reported healthy Q2FY26 earnings on the back of lower provisions, strong traction in other income, and lower opex intensity. Loan growth was strong, with growth largely driven by retail and corporate segments, said HDFC Securities. "We raise our FY26-FY27E estimates and factor in additional provisioning impact of Rs 500 crore for FY28E," it added with a target price of Rs 70 and a 'buy' rating.

Geojit Investments has a 'buy' rating on the stock with a target price of Rs 68 as it said that the lender is currently trading at a P/Bv of 1.5 times with a strong ROA and RoE of 1.75 per cent and 23 per cent as of FY25, respectively.