Offer for Sale - OFS
An Offer for Sale is a simpler method wherein promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the Exchange. The OFS segment was earlier allowed only for the Promoters/Promoters’ Group Entities of listed Companies, to act as ‘Sellers’ to dilute/offload their holding to achieve minimum public shareholding of 25%. Now, however, the segment has been extended to non-promoters of eligible companies holding at least 10% of share capital of the company.
To make it easier for promoters of publicly listed companies to cut their holding and comply with the minimum public shareholding. The OFS Mechanism was first introduced in the market by SEBI in 2012. Offer for Sale mechanism is available to 200 top companies in terms of market capitalisation.
Sellers have to provide a floor price on T-2/T-1 day (T being day of OFS). The floor price is the price at and above which an investor can place their orders.
An investor can invest up to Rs 2 lakhs under retail category in one company's OFS.
In some OFS, retail investors may be offered a discount on the floor price, especially if it is an OFS of PSU companies.
You can invest/participate in OFS with the help of your HSL account. Customers can login to their trading accounts and place bids by following the below mentioned steps:
Login – Click on IPO/OFS option – Select OFS – Apply
NRI clients can apply through Relationship Manager or Central Dealing Desk.