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Offer For Sale



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What is OFS?

OFS stands for Offer For Sale.

It is a process by which the promoter or a large investor holding of a listed company is offering to sell their holding through a separate exchange window.

This is the most common and preferred method for promoters to offload / dilute their holding in listed companies.

Who are eligible to OFS?

There are three types of people who can offer their holding in OFS mechanism:

1. Promoter(s)/ promoter group entities of companies that are eligible for trading and are required to increase public shareholding to meet the minimum public shareholding requirements

2. All promoters/promoter group entities of top 100 companies by market capitalisation in any of the last four completed quarters, market capitalisation being calculated as average market capitalisation in a quarter.

3. Any non-promoter shareholder of eligible companies (top 200 companies by market capitalization) holding at least 10% of share capital may also offer shares through the OFS mechanism.

Who can participate in OFS?

All investors registered with a NSE Trading member can participate in the OFS mechanism offered by NSE.

Where can I see ongoing OFS issues?

The information about currently available / ongoing OFS issues will be available on stock exchange websites.

For example, you can check the OFS Current Issues on NSE website at https://nseindia.com/live_market/content/live_watch/offer_sale/ofs_sale.htm

How will the shares be allotted to the investors?

The designated Stock Exchange will allot the shares either on a single price or multiple price models as specified by the issuer/seller.

No single bidder other than mutual funds and insurance companies shall be allocated more than 25% of the size of OFS.

Share under non-retail category and with 100% margins would be settled on T+1 day whereas for retail and non-retail with 100% margins will get settled on T+2 and will be credited in a manner similar to the existing equity market transactions.

What is Indicative Price?

Indicative Price is the volume weighted average price of all the valid/confirmed bids.

The indicative price shall be separate for Retail Bids and Non-Retail bids.

There shall be no indicative price display for the retail portion of OFS where "Sellers" provide retail invest ors an option for bidding at "cut-off" price.

Where can I buy shares under OFS?

You can login with your share broker login to place your bids to buy shares under OFS

How can I apply for OFS Zerodha?

Just login to http://q.zerodha.com and go to the Portfolio option and see OFS

For more details, check http://support.zerodha.com/kb/faq.php?id=220

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