An Offer For Sale (OFS) is a method that allows company promoters to sell their shares to institutional and retail investors through stock exchanges. In an OFS, existing shareholders (typically promoters) sell their shares directly to investors without the company issuing new shares. This differs from an Initial Public Offering (IPO), where the company issues new shares to raise capital. You can apply for OFS through your Zerodha account.
OFS orders have separate margin requirements with the clearing corporation. Due to margin transfer timelines and high order volumes near market close, orders placed after 3:25 PM will be processed on a best-effort basis.
For detailed information about OFS and other corporate actions, visit zerodha.com/varsity/chapter/supplementary-note-ipo-ofs-fpo.