The Government of India is selling a part of its stake in Bank of Maharashtra through an Offer for Sale (OFS). This is a method used to sell shares to the public on the stock market. The government is selling the shares at a slight discount to meet regulatory rules and raise money.
The government plans to sell 5% of its shares in the bank and has the option to sell an additional 1% if needed (this is called a green-shoe option), taking the total offer to 6% of the bank’s equity. If the entire stake is sold, the government could raise over ₹2,600 crore.
The government currently owns 79.60% of Bank of Maharashtra. SEBI rules say that public companies must have at least 25% public shareholding. By selling shares, the government’s stake will fall below 75%, helping the bank meet the rule.
When can investors buy these shares?
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Non-retail investors (big institutions, mutual funds, foreign investors) can participate on Tuesday, 2 December 2025.
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Retail investors (individual buyers) can participate on Wednesday, 3 December 2025.
Details of the OFS (Offer for Sale)
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The government is selling 5% of the bank’s shares, which equals 38.45 crore shares.
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It also has the option to sell an additional 1%, which is 7.69 crore shares (this is the green-shoe option).
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If both parts are used, the total shares on offer = 46.14 crore shares.
Floor Price
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The minimum price at which investors can buy the shares is ₹54 per share.
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This floor price is 6.34% lower than the bank’s Monday closing price of ₹57.66, meaning the shares are being offered at a discount. This discount is meant to attract buyers.
The bank’s shares have performed quite well over the years, even though they have been a bit weak recently. Over the last one month, the share price of Bank of Maharashtra has fallen by 3%. However, in the past three months, it has risen by 9%, and from the beginning of this year till now (YTD), the stock has grown by 8.5%. Looking at a longer time frame, the bank’s shares have increased by 28% over the last two years. Over the last five years, the stock has performed exceptionally well, delivering a return of 353%, meaning its value has more than quadrupled.