Government’s Bank of Maharashtra Stake Sale Oversubscribed 4x; Greenshoe Option Activated

The Government of India’s sale of a 6% stake in Bank of Maharashtra through an Offer for Sale (OFS) has received four times the bids compared to the available shares on Day 1. The initial plan was to sell 5% of its stake at ₹54 per share, but overwhelming investor demand triggered the greenshoe option, increasing total divestment to 6%.

This move is expected to raise approximately ₹2,492 crore for the exchequer. The greenshoe mechanism allows the seller to offer extra shares if demand exceeds expectations, stabilizing the price while meeting investor appetite. Strong interest from institutional and retail investors signals market confidence in the bank’s fundamentals and supports the government’s ongoing disinvestment targets.