Bank of Maharashtra’s offer-for-sale (OFS) has been oversubscribed, allowing the state-run lender to be compliant with market regulator SEBI’s minimum public shareholding norm.

After the allotment of shares, the government’s stake in the bank will fall to 73.60% from 79.60% prior to the OFS. As per SEBI’s norms, the public shareholding in a listed company should be at least 25%.

The OFS of the Pune-headquartered bank would fetch the government about Rs 2,492 crore from a 6% stake dilution.

The bank had set a floor price of Rs 54 per share. The OFS closed for subscription on Wednesday.

"The second day of Bank of Maharashtra OFS closed with good interest from investors and 1.72 times subscription. With this, the bank is now minimum public shareholding compliant. We thank all investors for their participation," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

The government on Tuesday decided to exercise green shoe option by offloading additional 1% stake in the bank.

The base offer comprised 38.46 crore shares, representing 5% of paid up equity share capital of the bank, with an additional 7.69 crore shares, or 1% stake, available under the green shoe option, taking the total to over 46.14 crore shares, or 6% of the stake in the lender.

Besides Bank of Maharashtra, the government has more than 75% stake in four other banks. They are Indian Overseas Bank (94.6%), Punjab & Sind Bank (93.9%), UCO Bank (91%) and Central Bank of India (89.3%).