What is the maximum allowed bid quantity for retail OFS bids?
The maximum allowed bid value for retail bids is Rs. 2 lacs. The maximum allowed quantity depends on the maximum allowed value and the retail cut-off price.
Maximum allowed bid quantity = Rs. 2 lacs / cut-off price
For example, If the cut-off price for an OFS is Rs. 111, then the maximum allowed bid quantity is 2,00,000/111 = 1801.
You can check the details of an OFS including the maximum allowed bid quantity on our bulletin page. The ‘maximum allowed bid quantity’ is updated after the cut-off price is determined on the first day of bidding. Until then, the cut-off price is marked ‘Yet to be determined’.
The orders for an Offer For Sale (OFS) issue are collected over a two-day period.
The first day is reserved for Institutional and HNI orders (bids above Rs. 2 lacs). All retail bids are placed on the second day of the issue. Based on the bids received on the first day of the issue, a cut-off price is determined for the second day.
The new cut-off price becomes the floor price for retail bids. Retail bids can only be placed at or above the cut-off price. Learn more.