Offer For Sale

OFS stands for "Offer For Sale" in the share market. It is a mechanism used by companies to sell their shares to the public through the stock exchange. In an OFS, the existing shareholders of the company offer their shares for sale to the public, and the proceeds of the sale go to the shareholders and not the company. The price of the shares is determined through a bidding process, and the highest bidder gets the shares. OFS is commonly used by promoters or major shareholders of the company to reduce their stake in the company or raise capital for the company.

In the share market, OFS stands for Offer for Sale. It is a mechanism used by companies to raise funds by selling their shares to the public. Under this mechanism, a company's existing shareholders, usually promoters, sell their shares to the public or institutional investors through the stock exchange platform.

 

OFS helps companies in raising funds for their growth and expansion plans, reducing debt, and meeting regulatory requirements. By selling their shares, the company's promoters can also dilute their stake in the company and raise capital without issuing new shares.

 

Investors can benefit from OFS as they get a chance to buy shares of a reputed company at a discounted price. Since the shares are offered at a fixed floor price, investors can participate in the OFS and bid for shares at a price they find attractive. OFS can also offer an exit opportunity to existing shareholders who wish to sell their shares in the market.

 

Overall, OFS provides a win-win situation for both the company and its investors, as it helps the company raise funds and enables investors to participate in the growth story of a company.