Description

BSE announces the schedule and detailed procedures for the Offer for Sale (OFS) of Bank of Maharashtra shares scheduled for December 2-3, 2025, with a base offer size of 38.46 crore shares.

Summary

BSE has announced the complete schedule and procedures for the Offer for Sale (OFS) of Bank of Maharashtra shares. The OFS will be conducted over two days - December 2, 2025 (for institutional investors) and December 3, 2025 (for retail investors and employees). The base offer size is 38,45,77,748 shares with an oversubscription option of up to 7,69,15,549 additional shares. The floor price is set at Rs. 54.00 per share with a face value of Rs. 10.

Key Points

  • Security Details: Bank of Maharashtra (Symbol: MAHABANK, Code: 532525, ISIN: INE457A01014)
  • Base Offer Size: 38,45,77,748 shares with oversubscription option of 7,69,15,549 shares
  • Total Maximum Shares: 46,14,93,297 shares (including green shoe option)
  • Floor Price: Rs. 54.00 per share
  • Retail Reservation: 10% of issue size (3,84,57,775 base + 76,91,555 oversubscription)
  • Non-Retail Allocation: 34,61,19,973 base shares + 6,92,23,994 oversubscription shares
  • Employee Quota: 75,000 shares
  • Market Lot: 1 share
  • Allocation Method: Price Priority Method
  • Seller Decision: Oversubscription exercise decision to be communicated by 5 PM on December 2, 2025

Regulatory Changes

No regulatory changes. This is a standard OFS procedure notification following established BSE guidelines for offer for sale transactions.

Compliance Requirements

For Trading Members and Custodian Members:

  • Must facilitate bidding through designated BSE platforms (iBBS, RTRMS)
  • Must ensure proper categorization of investors (MF, IC, NII, RI, EMP)
  • Must collect appropriate margins based on investor category
  • Must process give-up/take-up requests within specified timeframes

For Investors:

  • Institutional Investors (IC/MF/OTHS/NII): Bid on December 2, 2025, between 9:15 AM - 3:30 PM
  • Retail Investors (RI/RIC) & Employees (EMP): Bid on December 3, 2025, between 9:15 AM - 3:30 PM
  • Retail Investors: Bid value up to Rs. 2 lakhs requires 100% upfront margin in cash/cash equivalents
  • Retail above Rs. 2 lakhs & Non-Institutional: 100% upfront margin in cash only
  • Institutional Investors: Option of 100% margin or 0% margin (cash only)
  • Give-up/Take-up: Institutional investors (0% margin bids) can exercise by 7:30 AM on T+1; Retail/Employee by 7:30 AM on T+2

Platform Access:

Important Dates

  • December 1, 2025: Circular notification date
  • December 2, 2025 (T Day):
    • Institutional/Non-Institutional bidding (9:15 AM - 3:30 PM)
    • Bid modification and cancellation allowed (9:15 AM - 3:30 PM)
    • Seller to announce oversubscription decision (by 5:00 PM)
  • December 3, 2025 (T+1 Day):
    • Give-up/Take-up for institutional 0% margin bids (by 7:30 AM)
    • Retail/Employee bidding (9:15 AM - 3:30 PM)
    • Bid modification and cancellation allowed (9:15 AM - 3:30 PM)
    • Settlement for T Day institutional bids
  • December 4, 2025 (T+2 Day):
    • Give-up/Take-up for retail/employee bids (by 7:30 AM)
    • Settlement for T+1 Day retail/employee bids

Impact Assessment

Market Impact: HIGH - This is a significant disinvestment involving a public sector bank with up to 46.14 crore shares potentially entering the market. At the floor price of Rs. 54, the base offer represents approximately Rs. 2,077 crore, with total potential value of Rs. 2,492 crore including oversubscription.

Liquidity Impact: The OFS will significantly increase trading volumes in MAHABANK stock. The price priority allocation method may lead to price discovery above the floor price based on demand.

Investor Participation: The structured approach with separate days for institutional and retail investors ensures orderly participation. The 10% retail reservation provides retail investors dedicated allocation opportunity.

Operational Impact: Trading members must ensure system readiness for handling large bid volumes across multiple investor categories with different margin requirements and settlement cycles. The carry-forward mechanism for unallocated bids from T to T+1 day requires careful tracking and processing.

Impact Justification

Major OFS event for a public sector bank involving 38.46 crore shares (base size) with potential oversubscription of 7.69 crore additional shares, requiring participation from institutional and retail investors with specific timelines and procedures.