Understanding Offer For Sale (OFS) in the Stock Market

What is an Offer for Sale (OFS)?

An Offer For Sale (OFS) stands as a distinctive chance for all classes of investors to acquire shares of an already-listed company, specifically when a promoter wishes to divest a portion of their stake. This occurs on a designated date and through a distinct procedure divergent from the standard market trading activities. Differentiating from a Follow-on Public Offering (FPO) where firms gather capital via fresh share issuance, OFS gets activated solely when extant shares are presented for sale.
Only promoters or stakeholders commanding more than 10% share capital in an entity can initiate such a proposition. It's imperative to note that the firm's authorized capital remains unaffected by an OFS. Consequently, the total equity shares remain static pre and post the OFS execution. Nonetheless, there are several facets to be vigilant about:
  • An OFS might emerge when the public's shareholding is under 25%.
  • The shareholding matrix undergoes alteration, amplifying the public shares and curbing the promoter stakes.
  • OFS can be a golden chance to capitalize on the prospective growth of a firm.
  • A general trend reveals that entities opting for an OFS typically offer a discount, hovering around 5%.
  • Prospective investors should tread cautiously as OFS might be a strategy by promoters to divest their inflated shares to unsuspecting retail investors.

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    • Can I apply for OFS in FYERS?

      Yes, you can apply for an Offer For Sale (OFS) through FYERS. To understand the detailed procedure of how to apply for OFS via FYERS, you can refer to this article.
    • Can a retail investor apply for OFS?

      Absolutely, any Indian citizen possessing a Demat account linked with a brokerage that's registered with the exchange/s holds the eligibility to partake in Offer For Sale (OFS) issues.
    • Can I modify my order after applying for the OFS?

      Certainly, when you place a bid for the Offer For Sale (OFS) through FYERS, you retain the flexibility to modify your order. The window for such modifications aligns with the standard OFS market hours, which spans from 9:30 AM to 3:30 PM. Do note, ...
    • What is the procedure to apply for OFS in FYERS?

      If you're keen to invest in companies initiating an Offer For Sale (OFS) via FYERS, the procedure is simple and user-friendly: Login to the Portal: Start by navigating to the FYERS OFS portal. Use your FYERS login credentials to sign in. Choose the ...
    • Why is my OFS order rejected?

      Submitting an OFS bid on FYERS is typically straightforward. Nonetheless, certain factors can trigger a rejection of your OFS order: Entering a price that falls below the company's designated floor price or exceeds its capped price. Discrepancies or ...