- HOW TO BUY AN OFS?
- HOW DO I KNOW WHAT PRICE TO BID?
- HOW DO I BID?
- IS OFS LIKE IPO?
- JUST FOR INFORMATION
HOW TO BUY AN OFS?
OFS is conducted on the stock exchange platform. There is a special announcement and a window is made available to the investors for putting in their bids. All bids are collected during the day and bid acceptance happens at the end of date. Bidders who offer highest price are accepted
HOW DO I KNOW WHAT PRICE TO BID?
The company gives a band within which bids should be made. The investor can offer any price within the band or indicate that they are ready to offer to buy at an average price offered by all other bidders. This makes it easy to bid
HOW DO I BID?
You should have an investment and Depository account with the broker. Payment must be made in advance to the broker so that if your bid is accepted broker can accept your allotment. Payment can be made online to the broker
OFS by government companies are good investments since these are old companies, though government is aggressive in pricing the OFS. Some discount is offered to retail investors
In case of OFS by other companies, one needs to study and decide if it is a good investment then only subscribe
Since the OFS companies are already listed there is plenty of liquidity in selling them on stock exchanges. Though you can always check on the liquidity on exchange before investing
Same as returns on any share traded on the exchange. Depends on how aggressive the OFS pricing is. Normally the promoter have a personal interest hence they are aggressive on pricing. Not much is left for an investor
IS OFS LIKE IPO?
Yes IPO is made by a new company and the money collected from investors go to the company. In case of OFS the funds go to the promoter. Click here to learn more about IPO
JUST FOR INFORMATION
Treat OFS as an IPO investment. If you are not having full information on the company sell off on first day of listing. Risk is high if you do not monitor your investments.