Government to sell up to 6% stake in Bank of Maharashtra via OFS: DIPAM
New Delhi, December 1
The Offer for Sale in Bank of Maharashtra is set to open on Tuesday with the government aiming to sell up to 6% stake via an offer-for-sale, the Department of Investment and Public Asset Management (DIPAM) said in an update on social media post X.
The bid will be open tomorrow for Non-Retail investors, while the Retail investors can bid on Wednesday.
"Government offers to disinvest 5% equity in the bank with an additional 1% as a green shoe option," DIPAM said.
Notably, 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.
In its recently released June-September quarter of FY26, Bank of Maharashtra reported a 23% year-on-year increase in net profit to Rs 1,633 crore. The growth was mainly aided by healthy growth in net interest income (NII).
Bank's NII expanded 15.71% Y-o-Y to Rs 3,248 crore in Q2FY26, compared to Rs 2,807 crore in Q2FY25. The net interest margin (NIM) moderated to 3.85% in Q2FY26 from 3.98% in Q2FY25.
— ANI
Reader Comments
As a retail investor, I appreciate the separate bidding day for us. Makes the process less chaotic. Will definitely look at applying on Wednesday. The QIP and now this OFS should help the bank meet the public shareholding norms faster.
Hope the proceeds from this disinvestment are used for infrastructure or social schemes and not just to plug the fiscal deficit. Transparency in the use of funds is key. The bank's performance is solid, so the offer should get good response.
Interesting to see the NIM moderating slightly even with NII growth. Might be something for investors to watch. But overall, 23% profit growth is impressive. Government still holds a majority stake post-OFS, so strategic control remains.
With the government stake at nearly 80%, this 6% sale is just a small step. They need to be more aggressive in bringing it down to 51% or lower. Too much government ownership can hinder efficiency in the long run, yaar.
Bank of Maharashtra has been a consistent performer among public sector banks. This OFS might be a good opportunity for long-term portfolio. The capital raised through QIP and now this will strengthen their balance sheet further. 📈
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