Government Initiates Stake Sale in Bank of Maharashtra to Boost Public Shareholding

The Indian government plans to sell up to 6% stake in the Bank of Maharashtra through an Offer for Sale starting Tuesday. This move aims to raise approximately Rs 2,600 crore and help the bank meet the Securities and Exchange Board of India's public shareholding mandate of at least 25%.

The Indian government is set to divest up to 6% stake in state-owned Bank of Maharashtra to comply with public shareholding requirements. The divestment, scheduled to begin Tuesday for Non-Retail investors and Wednesday for Retail investors, is expected to raise about Rs 2,600 crore.

Currently, the government holds a 79.60% stake in the Pune-based bank. The planned reduction will bring its holding below 75%, aligning with the Securities and Exchange Board of India's regulation that mandates a minimum of 25% public shareholding for listed companies.

This move forms part of a broader regulatory effort for public sector institutions, with several other banks such as Indian Overseas Bank, Punjab & Sind Bank, UCO Bank, and Central Bank of India still holding government stakes above the threshold.

(With inputs from agencies.)