SAIL Offer-for-sale (OFS)

 

The Government of India has announced a 10% stake sale in SAIL (Steel Authority of India Limited) via an Offer-for-Sale and here are some details:

SAIL OFFER-FOR-SALE 

Floor price: Rs. 64 per equity share

 

Application date for retail investors: Friday, 15th January 2021

 

Click here to get more details on this offer

What is Offer-for-sale (OFS)?

OFS is an investment opportunity for all types of investors to own shares of a listed company, where a promoter wants to sell off part of their investment. This is conducted on a specific date, via a process that is separate from the normal market trading process.

 

How is OFS different from normal market trading?

1. Unlike normal market trading, OFS is based on a bidding platform provided by the Exchange.
2. All orders placed must be above the base price called floor price set up by the company.
3. Investors can bid for even a single share and can also place multiple order bids.
4. All shares allotted to investors via an OFS are settled on T+1 day 

For more information on OFS, click here         

 

Why choose OFS over buying shares directly through the exchange?

The floor price set by a company is usually lower than the current market price at which the stock is being traded. Thus, buying shares via an OFS gives an investor the opportunity to purchase shares of that company at a lower price. However, since this a bidding-based system, there may be some occasions where the OFS allotment price crosses the current market price of the company.

 
How to apply for a OFS on Upstox?

Applying for an OFS is quick and easy. You can do this via our Call-N-Trade facility. 

 

All you need to do is call us on 022-61309998 / 022-71309998 and place your order bids by quoting the quantity and price at which you wish to buy the shares. Please make sure you have sufficient funds in your account, to enable your order bid to be accepted by Upstox. In order to successfully place your order, you need to have your Call-N-Trade TPIN handy. You can find your T-PIN find here. 

Note: For SAIL, the floor price is Rs. 64 per share so remember to place your bids at or above this price. The cut-off price as determined on the first day of the bidding (14th Jan 2021) for the general category is Rs. 65.65 per equity share. 

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Upstox Team

Authorised Partner