BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank
banner

Unlocking Offer for Sale (OFS): Exploring Market Dynamics



  Dec 26, 2023

Offer For Sale (OFS)



1. What is an Offer For Sale (OFS)?

An Offer For Sale is a mechanism that allows promoters or major shareholders of a publicly listed company to sell their shares directly to the public.

2. How does OFS differ from IPO?

While an Initial Public Offering (IPO) is for companies going public for the first time, an OFS is for shareholders of an already public company to sell their existing shares.

3. Who can use the OFS method?

It’s typically used by government or private promoters in public companies to reduce their holdings.

4. What is the process of an OFS?

In an OFS, shares are offered in a dedicated window on the stock exchange, allowing retail and institutional investors to place bids.

5. How is the price for OFS shares determined?

The seller may set a floor price, and investors bid at or above this price. The final price is often determined by the bids received.

6. What are the advantages of an OFS?

OFS is quicker and less cumbersome compared to other selling methods, offering a transparent and efficient way for promoters to reduce their holdings.

7. Who can participate in an OFS?

Qualified institutional buyers, retail investors, and sometimes company employees can participate in an OFS.

8. How does OFS impact the stock price?

The impact varies; it can lead to a temporary decrease in stock price due to increased supply of shares.

9. Is there a reservation for retail investors in an OFS?

Yes, often a portion of the OFS is reserved for retail investors, offering them a chance to participate directly.

10. Can OFS be used for disinvestment by governments?

Yes, governments frequently use OFS to sell their stakes in public sector enterprises to meet disinvestment targets.


Share:
 

Get a call back

Fill the below form to get free counselling for UPSC Civil Services exam preparation

 
UPSC DAILY CURRENT AFFAIRS

 
INDIA: ADVANTAGES OF NUCLEAR-POWERED AIRCRAFT CARRIERS
 
Wind Power Geopolitics: Global Transformation
 
SLOVAKIA POLITICAL CRISIS: GEOPOLITICAL AND GEOECONOMIC IMPACT
 
REDUCING PESTICIDE USE WHILE EMPOWERING FARMERS IN INDIA
 
INTEGRATED PEST MANAGEMENT (IPM) IN INDIA
 
FUTURE OF INDIA'S LAB-GROWN DIAMOND INDUSTRY
 
HAPs in Indian Military Surveillance
 
​REDISCOVERY OF SRI LANKAN GOLDEN-BACKED FROG IN INDIA
 
THE WORLD WATER FORUM
 
RATE CUTS and THE RESERVE BANK OF INDIA(RBI)
 
THE GENERALISED SYSTEM OF PREFERENCES (GSP)
 
2023: Minor Girl Victim Support Scheme under POCSO
 
SNCA PROTEIN
 
FORM 17 C AND VOTER TURNOUT DATA
 
MELTING ANTARCTICA and WORLD'S OCEANS AND ECOSYSTEMS