Government to sell up to 6% stake in Bank of Maharashtra, aiming to raise Rs 2,600 crore

The government has decided to divest a stake of up to 6 percent in state-owned Bank of Maharashtra through a sale offer effective Tuesday. At the current market price, the government could raise about Rs 2,600 crore by divesting up to 6 percent stake in the bank.

“The Bank of Maharashtra (BOM) offer for sale will open tomorrow for non-retail investors. Retail investors can bid on Wednesday. The government is offering to disinvest 5% equity in the bank, with another 1% as green shoe option,” Department of Investment and Public Asset Management (DIPAM) secretary Arunish Chawla said in a post onThe government currently holds 79.60 percent stake in the Pune-based bank.

With the stake dilution, the bank would be able to meet the minimum public shareholding standard of 25 percent as the government stake 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.