State-run Bank of Maharashtra is planning to raise at least ₹2,000 crore this financial year through a Qualified Institutional Placement (QIP) or Offer for Sale (OFS) to comply with SEBI’s minimum public shareholding requirement.
Managing Director and CEO Nidhu Saxena, speaking at the Ficci-IBA banking conference in Mumbai, said, “We will work it out, because as per the current prices, even around ₹2,000 crore should suffice to meet SEBI norms.”
On Monday, shares of Bank of Maharashtra closed 0.8% lower at ₹54.38 apiece on the NSE.
Saxena added that the bank is evaluating various fundraising options, including OFS. “That is definitely one of the priorities and some process from DIPAM (Department of Investment and Public Asset Management) has been initiated,” he said. The capital infusion will not only reduce the government’s stake to 75% but also strengthen capital adequacy to support business growth.
The government currently holds 79.6% stake in Bank of Maharashtra. As per SEBI’s rules, promoter holding in listed companies must be capped at 75%, ensuring at least 25% public float.
In FY25, the bank successfully raised ₹3,500 crore via a QIP, which saw strong investor participation, including foreign institutions. Encouraged by that response, Saxena noted the bank could look to raise more than the planned ₹2,000 crore if required.
The fundraising move comes as part of the government’s broader divestment plan to reduce holdings in five state-owned banks before the August 1, 2026 deadline. DIPAM has already appointed Goldman Sachs as sole advisor for a $3.3 billion stake sale in Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank, and UCO Bank, where government stakes remain at nearly 90% or higher.
Disclaimer: This article is for informational purposes only. It is not financial advice. Investors should consult certified advisors before making investment decisions.
