BoM plans ₹2,000 crore equity issue; govt stake to fall below 75%

Bank of Maharashtra will raise Rs 2,000 crore via equity issue by FY26 to meet SEBI's 75% public shareholding rule, reducing government stake from nearly 80%

Public-sector lender Bank of Maharashtra (BoM) is working on plans for equity offering for indicative ₹2,000 crore capital for meeting regulatory requirement to have public shareholding of 75 per cent by August 2026. This would be done by reducing the stake of the government of India, which currently stood at little less than 80 per cent.

 

“The bank has board-approved capital raising plan for FY 25-26,” said managing director and chief executive director Nidhu Saxena on the sidelines of FICCI-IBA event, adding that the bank is exploring aspects like mode of the fund raise and timing.

 

 The options open before Pune-based lender include offer for sale (OFS) of part of the government stake. Another option is to float fresh equity share offering.

 

 

Asked about the quantum of equity offering, Saxena said, “We will work it out as per the current prices, to comply with the SEBI norm, even at the current price around 2,000 crores should suffice”. Its stock closed at 0.77 per cent lower at ₹54.35 per share on BSE.

 

In October 2o24, Pune-based lender raised ₹3,500 crore in equity share capital (including share premium) through a Qualified Institutional Placement. It reduced the government stake by 7 per cent to 79.6 per cent as of June 30, 2025.

 

BoM’s Capital adequacy ratio stood at 20.06 per cent with Common Equity Tier1 ratio of 15.62 per cent at end of June 2025.