OFS (Offer for Sale) for fund raising
OFS (Offer for Sale) In previous blogs we have seen the concepts of IPO, FPO, and QIP Now we will see the OFS (Offer for sale). In previous years Promoters used to have more than 95-98 % shares but Now as per SEBI’s Guideline promoters can hold a maximum of up to 75% before this promoter can able to manipulate the share prices as there is less liquidity in the market and can have full control on share prices. If any of the promoters have more than 75% stake in that market, then by using this OFS facility can able to dissolve their stake holdings. Institutional investors with other big investors have a 25 % Quota, and 10% is for retail investors, retail investors can invest but not more than 2 lakh rupees individually . promoters can bring this OFS or the people having more than 10 % holding can bring this OFS to market if promoters are bringing OFS then they can’t participate in this OFS but any other shareholder than promoters are bringing OFS then promoters can particip...