Retail bids for an Offer for Sale (OFS) are limited to a maximum value of ₹2 lakhs. The maximum allowed quantity depends on the cut-off price set for the OFS.
You can calculate the maximum allowed bid quantity as: Maximum bid quantity = ₹2 lakhs ÷ cut-off price
The bulletin page displays the maximum allowed bid quantity for an OFS issue after the cut-off price is determined on the first day of bidding.
How the OFS bidding process works
The bidding process for an OFS issue runs over two days:
- Day 1: Institutional and HNI orders (bids above ₹2 lakhs) are collected. The cut-off price for retail bids is determined based on the bids received on this day.
- Day 2: This day is reserved for retail bids. You can only place retail bids at or above the cut-off price.