Full formBusiness & Corporate
OFSstands forOffer for Sale
Full Form of OFS
What is OFS?
Offer for Sale (OFS) is a mechanism used by major shareholders, including promoters and the government, to sell their stake in a publicly listed company through the stock exchange platform. In India, OFS is commonly employed for disinvestment of government holdings in public sector undertakings (PSUs). It was introduced by the Securities and Exchange Board of India (SEBI) to provide a transparent and efficient method for secondary market sale. The process involves a separate window on stock exchanges where bids are placed during a specified time. OFS allows retail investors, institutional investors, and non-institutional investors to participate. It is typically used when the government aims to meet fiscal deficit targets or when promoters wish to reduce their shareholding without affecting the stock price. OFS is relevant for competitive exams like UPSC, RBI Grade B, and SEBI Grade A where topics of capital markets and disinvestment are covered. Understanding OFS is crucial for students of finance and economics.
OFS का फुल फॉर्म
प्रस्तावित बिक्री
Example
The Government of India launched an OFS for its 10% stake in Coal India Limited to raise funds for the disinvestment target.
OFS — frequently asked questions
What is the full form of OFS?
The full form of OFS is Offer for Sale. It is a mechanism for selling shares of a listed company through the stock exchange.
How does OFS differ from an IPO?
OFS is a secondary market transaction where existing shareholders sell their shares, while IPO is a primary market offering where a company issues new shares to raise capital.
Who can participate in an OFS?
In India, retail investors, institutional investors, and non-institutional investors can participate in an OFS, subject to bid lot sizes and timings specified by the exchange.