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OFS Discount Calculator

An Offer for Sale (OFS) lets a promoter or large shareholder sell stock directly on the exchange to meet minimum public shareholding norms or raise cash. This calculator shows the discount the floor price and any extra retail discount represent versus the previous day's close. This is fully manual — a secondary-market OFS is a distinct exchange mechanism from the IPO offer-for-sale component we track for new listings, so there's no stored data to auto-fill here.

Discount to Previous Close (Floor Price)

+4.00%

The floor price is the minimum price the seller will accept — the final cut-off price for non-retail bidders can settle at or above this floor.

Effective Retail Price

₹470.00

Retail Discount vs Previous Close

+6.00%

SEBI's OFS framework mandates a minimum 10% reservation for retail investors, who separately bid on T+1 day at (or below) the previous day's cut-off price. This is a floor-price/discount calculation only — the actual allotment price for retail bidders depends on the final cut-off price discovered during the institutional bidding window, which this calculator doesn't have visibility into in advance.

How the OFS Discount Calculator works

The floor priceis the minimum price the seller is willing to accept, announced one trading day before the OFS window opens. Institutional bidders compete for shares at or above this floor on day one (T), with the final cut-off price discovered from that bidding. Retail investors bid on day two (T+1), typically at or below the previous day's cut-off price — and SEBI's OFS framework mandates that at least 10% of the OFS be reserved for retail investors.

Some OFS transactions additionally offer retail investors a flat rupee discount off the cut-off price — for example, the LIC OFS offered eligible retail investors and employees a flat ₹10/share discount. This extra discount is announced per-transaction and is not a standard fixed rule, so enter the actual figure from the specific OFS's announcement (or 0 if none was offered).

Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.

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Frequently Asked Questions

What is the difference between an IPO OFS and an exchange OFS?
An IPO's 'Offer for Sale' component is existing shareholders selling shares as part of a new listing's IPO process. An exchange OFS is a separate mechanism for an already-listed company's promoter or large shareholder to sell shares directly on the exchange, typically to meet SEBI's minimum public shareholding norms.
Who can participate in an OFS?
Both institutional and retail investors can participate. Institutions bid on the first day (T); retail investors get a dedicated window (usually T+1) with a minimum 10% reservation of the OFS size, per SEBI's framework.
Is the floor price the price I'll actually pay?
Not necessarily — the floor price is only the minimum. The final cut-off price for institutional bidders can settle above the floor if demand is strong; retail investors then typically bid relative to that cut-off, not the floor itself.
Why do companies use OFS instead of a block deal or follow-on offering?
OFS is a faster, lower-compliance mechanism specifically designed for existing (already-listed) shares to be sold on the exchange, commonly used by PSU promoters or large shareholders needing to meet minimum public shareholding requirements quickly.