Скачать или смотреть What is Offer For Sale?

Curious about what Offer For Sale means? In this video, we break down this term and explain its significance in the world of finance.

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✅ What is difference between OFS and IPO?
The main difference between an IPO (Initial Public Offering) and an OFS (Offer for Sale) lies in the source of the shares being offered. An IPO involves a private company offering new shares to the public for the first time, aiming to raise fresh capital for the company. An OFS, on the other hand, is when existing shareholders, like promoters or large investors, sell their already owned shares to the public. In an OFS, the company doesn't receive any new capital; the proceeds go directly to the selling shareholders.

✅ What is an example of OFS?
Suppose ABC company is raising capital through OFS by selling shares at ₹100 per share. Now Mr X bids for 5,000 shares, thus making an order for a total of ₹5,00,000. At the same time, a mutual fund called DEF Capital Fund also places an order for 10,000 shares, i.e. an order of around ₹10,00,000.

✅ What is offer for sale in public issue?
An Offer for Sale (OFS) is a process that allows owners to reduce their holding in listed companies transparently. Later on, these shares sold by the owners are offered for sale directly to the general public via a bidding process.