Offer for Sale

An Offer for Sale (OFS) is a mechanism on Indian stock exchanges through which large shareholders of a listed company—typically promoters or pre-IPO investors—sell part of their existing stake to the public without the company issuing any new shares. Since no fresh equity is created, the proceeds go entirely to the selling shareholders rather than the company. SEBI introduced the OFS window to provide a transparent, exchange-based route for promoters to comply with minimum public shareholding norms. Retail investors, non-institutional investors, and mutual funds can all participate in an OFS, which is typically open for one or two trading days and priced at a floor price set by the seller.