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Here is the list of companies that have recently announced Offer For Sale(OFS). Keep track on start and end dates, total offer size, face value, price, and minimum and maximum bidding quantities for shares.
Types of OFS:
There are mainly two types of Offer for Sale (OFS) that you should know about:
• Auction OFS: In this type of Offer for Sale (OFS), the final price for shares is decided through a bidding process. Investors place their bids stating how many shares they want and at what price. Then, the shares are given to the investors who bid the highest.
• Normal OFS: Here, the shares are sold at a fixed price set by the company or its owners. Investors can bid for shares at this fixed price, and they are given out on a first-come, first-served basis.
Eligibility to Join OFS:To take part in an Offer for Sale (OFS), you need to meet certain criteria. Usually, individuals, big investors, and non-resident Indians (NRIs) with a valid Demat account can participate. Participating involves placing bids through authorized stockbrokers.
Features of OFS:
Offer for Sale (OFS) offers some helpful features for both sellers and buyers. Let's take a look at what makes OFS special:
• Seller Eligibility:Only major shareholders or promoter groups with over 10% ownership can start an OFS.
• Reserved Shares: A portion of shares is reserved for institutional investors like insurance companies and mutual funds.
• Retail Investor Participation: A minimum percentage of shares is kept aside for regular investors.
• Transparent Price Discovery: Bidding process ensures transparent price discovery.
• Quick Process: OFS happens in just one day, making it efficient.
• Predefined Floor Price: Sellers set a minimum price for shares.
• Limited Allocation: Cap on how many shares one bidder can buy prevents excessive concentration.
Ans- Offer for Sale (OFS) is a method through which existing shareholders or promoters of a company sell their shares directly to the public through the stock exchange.
Ans- Generally, retail investors, institutional investors, and non-resident Indians (NRIs) with a valid Demat account can participate in an OFS.
Ans- To participate in an OFS, you need to place bids through authorized stockbrokers during the bidding window provided by the exchange.
Ans- Participating in an OFS allows investors to buy shares directly from existing shareholders at a transparent price, without the need for an Initial Public Offering (IPO).
Ans- The minimum bid quantity in an OFS is determined by the company offering the shares and is usually specified in the OFS announcement.
Ans- Yes, you can apply for an OFS through your Demat account by placing bids through authorized stockbrokers.
Ans- In an auction-based OFS, the final price is determined through a bidding process, while in a normal OFS, the shares are sold at a fixed price determined by the company or promoters.
Ans- If your bid is not fully allotted, the remaining amount will be refunded to your Demat account.
Ans- SEBI regulates OFS by setting guidelines and ensuring compliance with securities laws and regulations.
Ans- Yes, first-time investors can participate in an OFS by opening a Demat account and placing bids through authorized stockbrokers.
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