On the first day, it subscribed to over 400 per cent of the base shares of Rs 38.46 crore, prompting exercise of the green shoe option of another 1 per cent.The issue was subscribed at 4.07 times the base size, reflecting strong market confidence. Considering the over-subscription, the government has fully exercised the green shoe option, taking the total disinvestment to 6 percent of the BoM’s paid-up capital, an official statement said.
This will ensure that BoM achieves Minimum Public Shareholding (MPS) norms, the report said.
“The Bank of Maharashtra offer for sale received overwhelming response in the markets today. The issue was subscribed at 400 per cent of the base size. The government has decided to exercise the green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on
“Retail investors are allowed to bid tomorrow on December 3, 2025. Congratulations to the staff and leadership of the Bank of Maharashtra for the excellent financial performance over the last few years. Keep up the good work…,” he said.
The government encourages eligible investors to participate in the offering and participate in the value creation of the public assets, the statement said.
At the floor price, the government would rake in around Rs 2,492 crore by divesting its 6 per cent stake in the state-owned lender.
“The offer for sale of 5 per cent government stake along with a 1 per cent green shoe option received an impressive bid of 407 per cent in the non-retail segment, reflecting strong investor confidence in public sector banks and the robustness of the Indian banking sector,” Financial Services Minister M Nagaraju said in a message on X.
The floor price for Bank of Maharashtra OFS has been set at Rs 54 per share, reflecting a discount of 6.34 per cent over Monday’s closing price of Rs 57.66 per share on the BSE.
The base offer includes 38.46 crore shares, representing 5 per cent of the bank’s paid-up share capital, with another 7.69 crore shares, or 1 per cent stake, available under the green shoe option, taking the total to over 46.14 crore shares, or 6 per cent stake in the lender.
The government currently holds 79.60 percent stake in the Pune-based bank. With the dilution of interests, the bank would be able to meet the MPS standard of 25 percent, as the state interest will fall below 75 percent.
This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which require all listed companies, including public sector companies, to have a minimum public shareholding of 25 percent.
Capital market regulator Sebi has extended forbearance to CPSEs and public sector financial institutions till August 2026.
Other four lenders where government share exceeds the minimum threshold for public shareholding are Indian Overseas Bank with 94.6 percent, Punjab & Sind Bank with 93.9 percent, UCO Bank with 91 percent and Central Bank of India with 89.3 percent.
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