Why is the cut-off price higher for retail OFS orders?
- During an Offer For Sale (OFS) issue, orders are collected over two days. Institutional and HNI orders (bids above ₹2 lacs) are accepted on the first day, while all retail bids are taken on the second day. A cut-off price is determined for the second day based on the bids received on the first day, and this becomes the floor price for retail bids.
- The cut-off price for retail bids may be the same as the institutional bids if there is a low demand for the OFS, but if there is strong institutional demand, the cut-off price for retail bids may be significantly higher. Bids from individuals and HUFs worth less than ₹2 lacs are considered retail bids.
Offer for Sale(OFS)
- Why was the OFS allotment not received even though the request was placed before the cut-off?
- How to apply for an Offer for sale (OFS)?
- What is an Offer For Sale (OFS)?
- Can retail investors apply for an OFS below the cut-off price?
- What is the maximum allowed bid quantity for retail OFS bids?
- Why is the cut-off price higher for retail OFS orders?
- What are the payment modes available for the rights issue?
- Where can I apply for the rights issue?
- What if someone sells their REs and then applies for the rights issue?
- How to apply for rights issue?