Bank of Maharashtra has announced a floor price of ₹54 per equity share for its upcoming government disinvestment offer. This strategic move aims to reduce the government’s stake while boosting market participation, enhancing liquidity, and supporting the bank’s capital adequacy and growth objectives ahead of regulatory deadlines.
Bank of Maharashtra has fixed the floor price for the government’s planned equity share offer at ₹54 per share. This pricing sets the minimum bid level for investors participating in the disinvestment via a Qualified Institutional Placement (QIP) or Offer For Sale (OFS). The move forms part of the government’s broader plan to reduce its stake from approximately 79.6% to nearly 75%, in compliance with SEBI’s minimum public shareholding norm of 25%.
The equity offer is expected to attract strong institutional interest due to the bank’s improving financial performance and asset quality. The proceeds from the disinvestment will bolster the bank’s capital base to meet Basel III norms and support expansion in key business areas such as retail and corporate lending.
This disinvestment initiative reflects the government’s ongoing mandate to diversify ownership in public sector banks and enhance their competitiveness in the financial services market.
Key Highlights
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Floor price set at ₹54 per equity share for the Bank of Maharashtra offer.
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Government stake to reduce to about 75% post-disinvestment.
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Disinvestment to comply with SEBI’s 25% minimum public shareholding requirement.
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Strong institutional investor interest anticipated based on bank’s performance.
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Proceeds to support capital adequacy, Basel III compliance, and growth strategies.
Sources: Economic Times, Business Standard, Angel One, ScanX Trade