Financial institution of Maharashtra OFS oversubscribed, govt mops up Rs 2,492 cr
With the allotment of shares, the Pune-based lender would change into Minimal Public Shareholding compliant with the Sebi norms.
The OFS of Financial institution of Maharashtra closed for subscription Wednesday at a ground value of Rs 54 per share. At this value, the federal government would mop up about Rs 2,492 crore by divesting its 6 per cent stake within the lender.
Previous to the OFS, the federal government’s holding within the financial institution was 79.60 per cent. With the stake dilution to 73.6 per cent, the financial institution would be capable of meet the MPS norm of 25 per cent as the federal government stake would come under 75 per cent.
“The second day of Financial institution of Maharashtra OFS closed with good curiosity from traders and 1.72 occasions subscription. With this, the Financial institution is now Minimal Public Shareholding compliant. We thank all traders for his or her participation,” Division of Funding and Public Asset Administration (DIPAM) Secretary Arunish Chawla mentioned in a publish on X.
The federal government on Tuesday determined to train inexperienced shoe possibility by offloading further 1 per cent stake within the financial institution.
The bottom provide comprised 38.46 crore shares, representing 5 per cent of paid up fairness share capital of the financial institution, with a further 7.69 crore shares, or 1 per cent stake, out there underneath the inexperienced shoe possibility, taking the whole to over 46.14 crore shares, or 6 per cent of the stake within the lender.
The stake dilution was consistent with the Securities Contract (Regulation) Guidelines issued by the Securities and Alternate Board of India, which mandate that each one listed firms, together with these within the public sector, should have a minimal public shareholding of 25 per cent.
Capital market regulator Sebi has given forbearance to CPSEs and public sector monetary establishments until August 2026.
Different 4 lenders the place the federal government’s stake is greater than minimal public shareholding threshold are Indian Abroad Financial institution at 94.6 per cent, Punjab & Sind Financial institution 93.9 per cent, UCO Financial institution 91 per cent, and Central Financial institution of India 89.3 per cent.
