Bank of Maharashtra needs to raise Rs 2,000 cr to meet SEBI's minimum public shareholding norms: MD & CEO Nidhu Saxena

Bank of Maharashtra

Bank of Maharashtra (BoM) needs to raise Rs 2,000 crore to meet the Securities and Exchange Board of India's (SEBI) minimum public shareholding norms, bank's managing director and chief executive officer Nidhu Saxena said on Monday.

"We will work it out, because as per the current prices, to comply with the SEBI norm, even at the current price around Rs 2000 crore (is what) we are looking at," Saxena said on the sidelines of the FIBAC 2025 event on Mumbai.

He added that any amount raised beyond this threshold will be used for the business growth purposes.

As on June 30, government holds 79.60 percent stake in the bank. To meet SEBI's norms, the bank is required to dilute 4.60 percent.

The Securities and Exchange Board of India (Sebi) requires all listed companies to maintain a minimum public shareholding of 25 percent.

The deadline for all public sector undertakings to adhere to the norm was August 1, 2024, but the government has extended it to August 1, 2026.

On July 30, Moneycontrol reported that merchant bankers appointed to manage the upcoming qualified institutional placements (QIP) of five nationalised banks have likely been mandated by DIPAM to rope in as many foreign investors as possible during roadshows.

Further, he added that the bank's credit growth is expected to grow at 17 percent this fiscal year.

The current growth in credit in the bank is coming from all the segments such as corporate, retail, agri and MSME segments. Further, opening new branches have also helped in a significant manner, he added.

Saxena said the bank has a board-approved plan to open 1000 branches in the next 5 years. "So, we have cut this 5 year milestone to the next 18 months and we have worked out a list of 321 branches to be precise," he added.