The government will unload up to 6% stake in state-owned Bank of Maharashtra through an offer for sale (OFS) commencing tomorrow.

This will fetch the government about Rs 2,600 crore at the current market price.

The floor price for the sale is Rs 54 per share, compared with the last close price of Rs 57.65.

"Offer for sale in Bank of Maharashtra (BOM) opens tomorrow for non-retail investors. Retail investors can bid on Wednesday. Government offers to disinvest 5% equity in the bank with an additional 1% as a green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

The government’s holding in the Pune-based bank is currently 79.60%.

The stake dilution will allow the bank to meet the minimum public shareholding norm of 25%.

The Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India (Sebi) mandates all listed companies, including those in the public sector, to have a minimum public shareholding of 25%.

Capital market regulator Sebi has given forbearance to CPSEs and public sector financial institutions till August 2026.

In October 2024, Bank of Maharashtra completed a Rs 3,500-crore qualified institutional placement.

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%).