You can apply for an Offer for Sale (OFS) on Console. An OFS is a method where the promoter of a company sells their shares to institutional and retail investors through exchanges.
Steps to apply for OFS
- Login to Kite.
- Click on Bids.
- Click on Corporate actions.
- Corporate actions such as buybacks, takeovers, OFS, and delistings will be visible.
- Click on Place bid.
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Enter the number of shares for tender and click on
Submit.
If you receive the OFS allotment, your funds will be debited and the shares will be delivered to your demat account on T+1 day. A corresponding entry will reflect this transaction on your funds statement. If your funds are debited but you do not receive the shares on T+1 day, create a ticket.
Things to keep in mind
- The cut-off time for placing OFS orders on NSE is 3:30 PM on the offer end date. For BSE, the cut-off time is 2:30 PM. Ensure you have sufficient funds in your trading account before the cut-off time.
- A charge of ₹20 plus GST per order applies to every OFS order you place. The charges are non-refundable irrespective of whether your order is accepted, rejected or failed. If you place multiple orders, charges will be levied accordingly.
- Your order will be rejected if you have insufficient funds in your account.
- You can use sales proceeds to place NSE OFS orders, but not for BSE OFS orders.
- Zerodha will not fund the OFS purchase. However, if the trading account results in a debit for any reason, post allotment of OFS, interest at the rate of 0.05% will be charged on the debit balance.
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You can find the order acceptance period and other OFS details like floor price, maximum allowed quantity per investor, maximum allowed investment per investor, and allocation methodology on the
Zerodha bulletin.
- You can cancel orders before the cut-off time. However, you cannot modify orders.
- Your chances of receiving an OFS allotment vary depending on the allotment methodology the selling company adopts. Unlike IPOs, a bid at the cut-off price does not always ensure your bid will be considered.
- You can place non-retail orders at the floor price or higher. You can place multiple orders by following the same steps in both retail and non-retail categories.
- In the employee category, the maximum bid amount is ₹5,00,000 at the cut-off price.