Bank of Maharashtra OFS: Here's how retail investors can participate in it

According to the Department of Investment and Public Asset Management (DIPAM)'s post on social media platform "X", the Bank of Maharashtra OFS for non-retail investors was subscribed 400% in comparison to the base size.
By Hormaz Fatakia
The Offer For Sale (OFS) in state-run lender Bank of Maharashtra will open for retail investors on Wednesday, December 3. The issue was open for non-retail investors on Tuesday and received a strong response.
According to the Department of Investment and Public Asset Management (DIPAM)'s post on social media platform "X", the OFS for non-retail investors was subscribed 400% in comparison to the base size.
"Government has decided to exercise the green shoe option," the post stated further.
Here's how retail investors can subscribe to the OFS:
Firstly, you will have to open your trading / demat account with your designated broker and navigate to the OFS, or Corporate Actions section, whichever is available.
You can then select the company for whose OFS you wish to bid for.
Select the "retail" category and then place your bids by choosing the number of shares and the price at which you wish to buy those. The bid can either be placed at the floor price of the OFS or at a price higher than that, but not below it.
You can submit your bid once you check the details of the bid you have punched in. On completion of the authorization process, your bid will be placed. It is imperative to have sufficient balance in your trading account before placing your bid, else it will be rejected.
Multiple bids can also be placed by the retail investors, provided that the investor has the required amount in the demat account.
In case of oversubscription, there is a possibility that the retail investor may not receive the exact number of shares for which the bid has been placed. For example, if only 50 shares are received against a 100-share bid, the remaining amount will be refunded back to the investor's account, similar to an IPO process.
The bids can also be altered during the course of the day, and there is no cap on the number of times that can be done.
Bank of Maharashtra's OFS
The government intends to divest up to 5% stake in Bank of Maharashtra in order to make the lender compliant with Minimum Public Shareholding (MPS) norms. With the government now choosing to exercise the green shoe option, the total stake divestment will be 6%, in case the retail portion is also fully subscribed.
Post the OFS, government shareholding in Bank of Maharashtra will fall to 73.6% from 79.6% currently.
Floor price of the OFS has been fixed as ₹54 per share.
Shares of Bank of Maharashtra ended little changed on Tuesday at ₹57.61.
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