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Bank of Maharashtra OFS: A 400% Subscription Success Story on Day 1

The Offer for Sale for Bank of Maharashtra got off to a roaring start, being subscribed four times over on the very first day. This fantastic response led the government to decide it would also sell an extra one percent stake. Retail investors now get their chance to bid in the sale tomorrow. It's a big step for the bank in meeting the rules for public shareholding.

Key Points: Bank of Maharashtra OFS Subscribed 400%, Govt Exercises Green Shoe

  • Government to sell extra 1% stake via green shoe option after massive demand
  • Retail investors can place their bids on December 3, 2025
  • OFS aims to raise approximately Rs 2,492 crore for the exchequer
  • Move helps bank progress toward mandatory 25% public shareholding norm
2 min read

Bank of Maharashtra OFS subscribed 400% of base size on Day 1

The Bank of Maharashtra OFS was oversubscribed 400% on Day 1, prompting the government to exercise the green shoe option for an additional 1% stake sale.

"Offer for Sale in Bank of Maharashtra received overwhelming response in the markets today. The issue was subscribed 400 per cent of the base size. - DIPAM Secretary"

New Delhi, December 2

The Offer for Sale (OFS) of Bank of Maharashtra has received an overwhelming response, with the issue being subscribed 400% of the base size on Tuesday.

This prompted the government to exercise the green shoe option, allowing it to divest an additional 1% stake in the bank, taking the total stake sale to 6%.

In a post on X, the Department of Investment and Public Asset Management (DIPAM) Secretary said, "Offer for Sale in Bank of Maharashtra received overwhelming response in the markets today. The issue was subscribed 400 per cent of the base size. Government has decided to exercise the green shoe option. Retail investors get to bid tomorrow on 3rd December 2025. Congratulations to the staff and leadership at the Bank of Maharashtra for outstanding financial performance over the last few years. Keep it going..."

The government aims to raise approximately Rs 2,492 crore through this OFS, with retail investors able to bid tomorrow, December 3, 2025. This move is expected to help the bank meet the minimum public shareholding norm of 25%.

The Bank of Maharashtra has demonstrated outstanding financial performance in recent years, and this successful OFS is a testament to its strong market presence.

In its earlier announcement, DIPAM had said the government would offer to disinvest 5% equity in the bank, with an additional 1% as a green shoe option.

At the end of the September quarter, the government had a 79.6% stake in Bank of Maharashtra. Earlier in October 2024, the Bank of Maharashtra had completed a Rs 3,500 crore QIP to strengthen its capital base and move toward meeting public shareholding norms.

- ANI

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Reader Comments

S
Sarah B
As a retail investor, I'm glad we get a separate day to bid. The 400% subscription shows the issue was hot, but I hope the price for retail is fair and not inflated due to this frenzy.
V
Vikram M
Good move by the government. Disinvestment in profitable PSUs like this helps meet fiscal targets and brings more public participation. Hope other banks follow this performance.
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Priya S
While the success is great, I have a respectful criticism. The government stake is still nearly 80% even after this sale. The process to reach 25% public holding seems very slow. Retail investors need more such opportunities, faster.
R
Rohit P
The QIP of ₹3,500 crore and now this OFS... Bank of Maharashtra is on a solid footing. This is a classic example of a PSU bank shedding its old image. Feeling positive about applying tomorrow!
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Michael C
Interesting to see the 'green shoe option' being exercised on day one. Speaks volumes about the demand. DIPAM seems to have timed this offer perfectly with the bank's strong quarterly results.

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