Government on Tuesday decided to exercise green shoe option and will divest 6% stake in state-owned Bank of Maharashtra (BoM) through Offer for Sale (OFS) following overwhelming response from investors on the first day of subscription.

The OFS of BoM opened for subscription earlier on Tuesday for non-retail investors at a floor price of Rs 54 per share.

On the first day, it subscribed 400% of the base size 38,45,77,748 shares triggering exercise of green shoe option of additional 1%.

"Offer for sale in Bank of Maharashtra received overwhelming response in the markets today. The issue was subscribed to 400% of the base size. The government has decided to exercise the green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

"Retail investors get to bid tomorrow on 3rd December 2025. Congratulations to the staff and leadership at the Bank of Maharashtra for outstanding financial performance over the last few years. Keep it going...," he said.

Other four lenders where the government's stake is more than minimum public shareholding threshold are Indian Overseas Bank at 94.6%, Punjab & Sind Bank 93.9%, UCO Bank 91%, and Central Bank of India 89.3%.