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What OFS is, how to apply for an OFS, OFS vs IPO — a complete guide for Indian investors.
Published by The Retail Trader · AUG 11, 2026 · Features
What OFS is, how to apply for an OFS, OFS vs IPO — a complete guide for Indian investors.
OFS = Offer for Sale. Promoters or existing shareholders sell their shares through the stock exchange. It is not an IPO — the company is not issuing new shares, the old shareholders are selling.
Keep these six points in mind:
• Who sells — OFS: Existing shareholders, IPO: Company
• New shares — OFS: No (existing shares), IPO: Yes (new shares)
• Money to the company — OFS: Does not receive it, IPO: Receives it
• Price discovery — OFS: Discount possible, IPO: Book building
• Duration — OFS: 1 day, IPO: 3-5 days
• Retail discount — OFS: Usually 5%, IPO: Sometimes
Keep these five points in mind:
• Duration — 1 trading day (9:15 AM - 3:30 PM)
• Min bid — ₹2 lakh (retail)
• Retail discount — Usually 5%
• Where to apply — Broker app (Zerodha, Groww)
• Who can apply — Retail, institutional, HNI
Keep these six points in mind:
• Look at the OFS section in your broker app
• Select the name of the OFS
• Place your price bid (floor price or above)
• Enter the quantity
• Submit
• The result comes the same day
Good OFS:
• Strong company, promoter selling a small stake
• A discount is being offered (5%)
• Company fundamentals are good
• Government OFS (PSU stocks)
Bad OFS:
• Promoter selling a large stake (>10%)
• Company fundamentals weak
• No discount
• Promoter has already pledged shares
The government regularly conducts OFS in PSU stocks (ONGC, Coal India, BEL, etc.). Usually:
• 5% retail discount
• Floor price below the market price
• Good opportunity for long-term investors
Keep these points in mind:
• 📌 OFS (OFFER FOR SALE)
• 📊 Existing shareholders sell
• 📊 The company does not receive the money
• 📊 1 trading day, retail discount 5%
• OFS vs IPO:
• 📊 OFS — Existing shares, 1 day, no new capital
• 📊 IPO — New shares, 3-5 days, the company receives the money
• HOW TO APPLY:
• 📊 Broker app → OFS section → Bid price + quantity
• 📊 Same day result
• STRATEGY:
• ✅ Strong company + Discount + Small stake sale
• ✅ Government OFS (PSU stocks, 5% discount)
• ❌ Promoter selling a large stake
• ❌ Weak company, no discount
Keep these points in mind:
• IPO Guide | What Is the Share Market? | SEBI Guide
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics change from time to time at the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.