Learn about OFS (Offer for Sale) — Hinglish notes

1.3.9 · Stock-Market › Primary vs Secondary Market & IPOs

OFS KYA hai?

OFS exist kyun karta hai? SEBI mandate karta hai ki listed companies mein se zyaadatar companies kam se kam 25% shares public ke paas rakhen (public shareholding). Agar koi promoter zyada hold kar raha ho, toh OFS ek fast aur transparent tarika hai us stake ko exchange par ek hi din mein dilute karne ka — fresh public issue se kahin zyada teez.

OFS vs IPO vs FPO — key contrast

Feature	IPO	FPO (fresh)	OFS
Company status	Unlisted → listing	Already listed	Already listed
Shares	Naye	Naye	Existing
Paisa jaata hai	Company ko	Company ko	Seller (promoter) ko
Duration	~3–5 din	~3–5 din	1 trading day
Platform	ASBA/registrar	ASBA/registrar	Exchange bidding window

OFS kaise kaam karta hai (step-by-step)

Kise allotment milega yeh first principles se nikaalte hain:

Seller kul $Q$ shares offer karta hai floor $P_{f}$ par.
Investors $(P_{i}, q_{i})$ pairs submit karte hain. Sirf $P_{i} \geq P_{f}$ wale survive karte hain.
Survivors ko $P_{i}$ descending order mein sort karo.
Quantity accumulate karo: bid 1 ko allot karo, phir bid 2 ko, … jab tak cumulative $\sum q_{i}$ , $Q$ tak na pahunche.
Last allotted share ki price = cut-off $P_{c}$ .
Allotment rule: jinki bid $P_{i} > P_{c}$ hai unhe full allotment milti hai. Jo exactly $P_{c}$ par hain unhe oversubscription hone par pro-rata mil sakta hai.

Retail benefits

Saath hi, OFS ka kam se kam 25% mutual funds aur insurance companies ke liye reserved hota hai, aur 10% retail ke liye — taaki chote investors crowd out na ho jaayein.

Figure — Learn about OFS (Offer for Sale)

Worked Examples

Worked example Example 2 — Cut-off dhundhna

Seller $Q = 1000$ shares offer karta hai, $P_{f} = ₹100$ . Bids:

Investor	Price	Qty	Cumulative (high→low)
X	₹120	400	400
Y	₹110	400	800
Z	₹105	400	1200 → stop

High→low sort kyun? Seller ki realisation maximize karne ke liye. Cumulative Z ki bid ke dauran 1000 cross karta hai. Toh cut-off $P_{c} = ₹105$ .

X (₹120) aur Y (₹110): full allotment (800 shares).
Z: sirf $1000 - 800 = 200$ uske maange gaye 400 mein se → pro-rata. Yeh step kyun? Jab hum Z ke price level par pahunchte hain toh sirf 200 shares bache hain.

Common Mistakes (Steel-manned)

Active Recall

Recall Quick self-test (chhupaao aur jawab do)

OFS mein paisa kaun receive karta hai? → Selling shareholder (promoter), company nahi.
Naye shares ya existing shares? → Existing.
OFS window kitni der chalti hai? → Ek trading day.
Floor price kya hota hai? → Minimum price jiske neeche bids reject ho jaati hain.
Promoters ke liye OFS kyun exist karta hai? → Minimum 25% public shareholding meet karne ke liye / jaldi cash raise karne ke liye.

Recall Feynman: ek 12-saal ke bachche ko samjhao

Socho tumhare chachu ke paas jar mein rakhe 100 marbles mein se 100 hain, lekin rule yeh hai ki kam se kam 25 marbles doosre bachcho ke paas hone chahiye. Toh ek dopahar chachu ek quick sale karte hain: bachche likhte hain ki unhe kitne marbles chahiye aur kitna denge, lekin koi bhi chachu ke board par likhe price se kam offer nahi de sakta. Jo bachche sabse zyada offer karte hain unhe pehle marbles milte hain. Important yeh hai: marbles chachu ke hain — toh paisa chachu ke paas jaata hai, marble factory ke paas nahi. Woh dopahar ki sale hi OFS hai.

Flashcards

OFS (Offer for Sale) kya hota hai?

Ek mechanism jahan existing bade shareholders/promoters apne already-owned shares ko exchange bidding platform ke zariye ek trading day mein public ko bechte hain.

OFS mein sale proceeds kaun receive karta hai?

Selling shareholder (promoter) — company NAHI.

OFS shares naye issue hote hain ya existing?

Existing shares.

OFS typically kitne time tak chalta hai?

Ek single trading day.

OFS mein floor price kya hota hai?

Minimum bid price; iske neeche ki bids reject ho jaati hain.

OFS bid ke valid hone ki condition?

Bid price P_i ko satisfy karna chahiye P_i ≥ floor price P_f.

Promoters OFS kyun use karte hain?

SEBI ka minimum 25% public shareholding rule meet karne ke liye aur/ya apni stake ka kuch hissa exit karke jaldi cash raise karne ke liye.

OFS mein cut-off price kaise determine hoti hai?

Valid bids ko high→low sort karo, shares khatam hone tak allot karo; last allotted share ki price cut-off hoti hai.

Discount d ke saath cut-off P_c par retail price ka formula?

P_retail = P_c × (1 − d).

OFS aur IPO mein money flow ka fark?

IPO company ke liye naya capital raise karta hai; OFS cash selling shareholder ko transfer karta hai.

OFS mein retail investors ke liye kya reservation hoti hai?

Kam se kam 10% offer retail ke liye reserved hota hai; 25% mutual funds/insurance ke liye.

Retail investor ka "cut-off par" bid karne ka matlab?

Tum jo bhi final cut-off price aaye use accept karte ho.

Connections

Primary vs Secondary Market — OFS secondary nature ka hai (existing shares) lekin ek special exchange window par hota hai.
IPO (Initial Public Offering) — contrast: IPO fresh capital raise karta hai.
FPO (Follow-on Public Offer) — FPO fresh-issue ya offer-for-sale type dono ho sakta hai.
Minimum Public Shareholding (MPS) — 25% rule jo kaafi OFS ko motivate karta hai.
Book Building & Price Discovery — cut-off / floor-price mechanics book building se milte-julte hain.
Promoter Holding & Stake Sale — OFS promoter ka ek key exit route hai.