An Offer for Sale (OFS) is a mechanism through which promoters of a company can reduce their shareholding by selling their shares to the public. This method is commonly used to comply with regulatory requirements, such as maintaining a minimum public shareholding of 25%. If the promoter’s holding exceeds 75%, they may need to use the OFS route to bring it back within the prescribed limit.
The OFS process spans two days: T day for non-retail investors and T+1 day for retail investors. During this period, investors can place only limit orders between 9:15 AM and 3:30 PM.
OFS announcements are made one or two days before the issue opens, with a reserved portion of 10% allocated for retail investors. Oversubscription is confirmed on the issue day (T Day). Allocation of shares can follow either the Price Priority Method or the Proportionate Basis. The process is fast, and excess funds are returned to the trading participant the same day after 6:00 p.m. due to non-allotment or partial allocation.
2025 |
2025 |
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