Bank of Maharashtra Shares: Bank of Maharashtra's offer-for-sale fell by up to 2% as soon as it opened to retail investors today. The stock continues its decline for the fifth consecutive day.

Bank of Maharashtra shares plunge as OFS opens for retail investors; government sells 6% stake.

Bank of Maharashtra Shares: The Government of India has decided to sell its 6% stake in Bank of Maharashtra through an offer for sale (OFS). Today, as soon as the offer-for-sale opened for retail investors, shares fell by nearly 2%. Bank of Maharashtra shares have been declining for the fifth consecutive day. The share sale process began on December 2nd, and retail investors participated today.

Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), under the Union Finance Ministry, had told X, "The offer-for-sale in Bank of Maharashtra (BOM) opened today for non-retail investors. Retail investors will be able to bid on Wednesday (December 3). The government will sell 5% equity in the bank and has also offered an additional 1% as a green shoe option." DIPAM said that the OFS was subscribed to 400% of the base size.

What is the government's stake in the bank?

The government has set a floor price of ₹54 per share for this offer-for-sale. The base offer value at current market prices is approximately ₹2,200 crore, and the green shoe option could raise an additional ₹400 crore for the government.

According to shareholding data available for the quarter ended September 2025, the central government holds 612.26 crore shares, or 79.6%, in Bank of Maharashtra. The remaining 156.89 crore shares, or 20.4%, are held by public shareholders.

The OFS will allow the government to reduce its stake in the bank below 75%. This will increase public shareholding above 25%, as per Securities and Exchange Board of India regulations. Public shareholding refers to the number of shares in the bank owned by the general public. If it exceeds 25%, it means that no single individual or institution has significant control over the bank.

PSU bank stocks crash

Meanwhile, Minister of State for Finance Pankaj Chaudhary said in Parliament on Tuesday that the government is not considering a proposal to increase the FDI limit for PSU banks. Following his statement, PSU bank shares crashed on Wednesday, with Indian Bank experiencing the biggest decline of 6%.

Besides, Bank of Maharashtra, Punjab National Bank, Bank of India, Canara Bank, Bank of Baroda, Central Bank of India, Union Bank, Punjab & Sind Bank and UCO Bank fell by up to 2 per cent each. Meanwhile, the Nifty PSU Bank index also slipped by 3 per cent to an intraday low of 8,264 points—nearly 5 per cent below its recent high of 8,665 points.