IPOs
What is OFS (Offer for sale)?
Also called: Offer for sale
Hinglish mein padhein: OFS kya hota hai?
In an offer for sale, existing shareholders sell their shares; the money goes to them, not to the company.
Many IPOs mix a fresh issue (new money for the company) with an OFS. A large OFS share means early investors are cashing out.
Promoter stake sales in listed companies can also happen through an exchange OFS window.
Related terms
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.
- DRHP and RHPThe DRHP is the draft prospectus a company files with SEBI before an IPO; the RHP is the final version with dates and price band.
- Promoter and promoter holdingPromoters are the founders or controlling shareholders of a company. Promoter holding is the percentage of shares they own.