How to apply for an Offer for sale (OFS)?
An Offer For Sale (OFS) is a method that allows the promoter of a company to sell their shares to institutional and retail investors through exchanges.
To apply for OFS on Console, follow these steps:
- Click on Portfolio.
- Click on Corporate actions.
- Hover over ⋯ and click on Options.
- Place the bids. For retail orders, bids can be placed at the cut-off price¹ by selecting the Market order checkbox.
- Click on Submit.
If the OFS allotment is received, the funds will be debited and the shares will be delivered to the demat account on the next trading day i.e. T+1 day. A corresponding entry will be made on the funds statement to reflect this transaction. However, if the funds are debited and the shares are not received on T+1 day, create a ticket.
Did you know?
- The cut-off time for placing OFS orders on NSE is 3:30 PM on the offer end date, whereas on BSE, the cut-off time is 2:30 PM for OFS on the offer end date. Ensure sufficient funds in the trading account on the offer end date before the cut-off time to get the allotment.
- A charge of ₹20+GST per order will be charged for every OFS order placed. The charges are non-refundable irrespective of whether the order is accepted, rejected or failed. If multiple orders are placed, charges will be levied accordingly.
- The order will be rejected if there are insufficient funds in the Zerodha account.
- Zerodha will not be funding 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.
- The order acceptance period and other details of the OFS, like floor price (Minimum bid price), maximum allowed quantity per investor, maximum allowed investment per investor, allocation methodology etc., can be found on the Zerodha bulletin (WEB).
- The credit from stocks sold on the same day, i.e., up to 80 %, can be used to place an OFS order. However, this 80% can only be used to apply for OFS on NSE and not on BSE.
- Orders can be cancelled before the cut-off time. However, no modifications are allowed.
- The chances of getting an OFS allotment vary depending on the allotment methodology adopted by the selling company. Unlike IPOs, a bid at the cut-off price does not always ensure that the bid will be considered. To learn more, see Why was the OFS allotment not received even though the request was placed before the cut-off?
- Non-retail orders can be placed at the floor price or higher. Multiple orders can be placed by following the same steps in both retail and non-retail categories.
All the current and upcoming corporate actions can be tracked on this list (DOC).