Bank of Maharashtra OFS: Government Begins Stake Sale as Share Price Holds Steady

The Bank of Maharashtra found itself back in the market spotlight as its Offer for Sale (OFS) opened, setting the tone for a busy day across the PSU banking space.

What appeared like a routine announcement quickly turned into a story of stake dilution, government divestment, and how the Bank of Maharashtra share price reacted to the move.

The OFS carried a sense of anticipation. A government stake sale of this size doesn’t come every week, especially in a PSU bank that has delivered one of the strongest long-term returns in the sector.

Market Performance: How Bank of Maharashtra Shares Have Moved

The market has been watching the Bank of Maharashtra stock price with curiosity.

The recent movement has been steady, not dramatic, but it carries the weight of long-term performance.

In the short term, the Bank of Maharashtra share price has seen mixed momentum.

But when you zoom out, the numbers tell a more interesting story.

Performance snapshot:

• 1-month move: –3%
• 3-month move: +9%
• YTD: +8.5%
• 2-year rally: +28%
• 5-year return: +353% (multibagger territory)

On Tuesday morning, the stock traded almost flat, hovering near ₹57.39, showing that the market was taking a measured approach ahead of the OFS.

Even with the government stake dilution narrative in play, Bank of Maharashtra shares continued to reflect steady interest among PSU banking followers.

Main News: Government Launches Bank of Maharashtra OFS

The core update is straightforward—yet significant.

The government launched the Bank of Maharashtra OFS, announcing its intention to divest up to 6% stake in the PSU bank.

This includes a 5% base offer and an additional 1% green-shoe option.

The OFS opened on 2 December 2025 for non-retail investors and will open on 3 December 2025 for retail investors.

The move signals a planned reduction in promoter holding and aligns with the broader compliance requirement for minimum public shareholding.

At current market levels, the government stands to raise more than ₹2,600 crore by offloading up to 6% stake through the OFS.

Company Details: What the OFS Includes

The OFS structure reflects a clear breakdown.

Bank of Maharashtra OFS Details

• OFS Dates:
  • Non-retail: 2 December 2025
  • Retail: 3 December 2025
• Base Offer:
  • 38,45,77,748 shares (5% of total equity)
• Green-Shoe Option:
  • 7,69,15,549 shares (1% additional stake)
• Total Shares on Offer:
  • Over 46.14 crore shares
  • Represents 6% stake
• Floor Price:
  • ₹54 per share
  • Discount of 6.34% to Monday’s closing price of ₹57.66
• Current Promoter Holding:
  • Government stake at 79.60%

Post-offer, the reduction in stake helps the bank move closer to the 25% minimum public shareholding rule required for all listed companies.

This step is a part of the broader compliance roadmap laid out for public sector entities.

Why This OFS Matters

A government stake sale in a PSU bank often triggers conversations around liquidity, free-float, and long-term compliance.

In this case, the Bank of Maharashtra stake dilution also brings the bank closer to aligning with public shareholding norms.

The size of the offer—spanning more than 46 crore shares—is one of the largest recent moves by the government in the banking segment.

For many investors tracking PSU banks, this OFS becomes an important marker in the bank’s long-term structural journey.

Summary: Bank of Maharashtra Share Sale Sets the Tone in PSU Banking

The Bank of Maharashtra offer for sale arrived with clear numbers, structured timelines, and a sizeable promoter stake reduction plan.

While the Bank of Maharashtra share price held largely steady, the OFS added fresh activity to the stock and brought renewed attention to the PSU bank’s long-term performance.

Key takeaways:

• The government is launching a 6% stake sale via OFS.
• Floor price at ₹54, a 6.34% discount
• Total offer size: Over 46.14 crore shares
• Long-term performance remains strong with 353% returns in five years.
• The move supports the requirement to increase public shareholding.

As the OFS progresses, market participants continue to track how this dilution shapes the bank’s ownership structure and availability of shares in the broader PSU bank landscape.