An Offer for Sale (OFS) happens when the promoter of a public company chooses to sell their shares to retail and institutional investors. The OFS method is a transparent process that takes place through the bidding platform of the exchange. Companies must adhere to SEBI (Securities Exchange Board of India) guidelines when opting for the OFS process.
Investors are allowed to place their bids as per their interest in purchasing the company’s shares.
As per SEBI guidelines, 10% of the OFS must be reserved for retail investors.