Indian IPO Blog: OFS Floor Price

Showing posts with label OFS Floor Price. Show all posts

Wednesday, August 2, 2017

Hindustan Copper Offer for Sale (OFS) - Official NSDL Announcement

IndianIPOBlog August 02, 2017 0

Upcoming OFS

Hindustan Copper Offer for Sale (OFS) - Official NSDL Announcement

Name of Seller

The President of India, acting through and represented by the Ministry of Mines,Government of India

Name of Company whose shares are proposed to be sold

Hindustan Copper Limited
(ISIN:INE531E01026)

Name of stock exchanges where orders shall be placed

NSE and BSE

Date and time of the opening of the offer for retail investors

August 3, 2017 at 9.15 a.m.

Date and time of the closing of the offer for retail investors

August 3, 2017 at 3.30 p.m.

Date and time of the opening of the offer for non-retail investors

August 2, 2017 at 9.15 a.m.

Date and time of the closing of the offer for non-retail investors:
August 2, 2017 at 3.30 p.m.

Floor Price
Rs. 64.75 per share

Retail Discount

Retail Investors will be allocated Offer Shares at the Discounted Price i.e. at a discount of 5% to the Cut-Off Price in accordance with the SEBI OFS circulars. The Discounted Price, which shall be the final allocation price to the Retail Investors, may be below the Floor Price

Tuesday, April 18, 2017

National Aluminium (NALCO) Offer for Sale (OFS) opens for subscription tomorrow

IndianIPOBlog April 18, 2017 0

OFS in April 2017

National Aluminium (NALCO) Offer for Sale (OFS) opens for subscription tomorrow

Government of India has planned to divest upto 10% stake in National Aluminium (NALCO) Limited vide Offer for Sale (OFS), which will open for subscription for Non Retail category on Wednesday, April 19, 2017 and for Retail category on Thursday, April 20, 2017.

The floor price for the share sale is fixed at Rs.67/- per equity share. This is at around 8.8% discount over the closing market price of the share on BSE (Rs.73.45 per share)

NALCO is and India based manufacturer and distributor of aluminum products. National Aluminium Company Limited, abbreviated as NALCO (Incorporated in the year 1981) has units in Odisha at places like Angul and Damanjodi. It was incorporated as a public sector enterprise of the Ministry of Mines, Government of India.

The company is Asia's largest and the sixth largest, integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations

Click the links given below to check out more details on OFS

NALCO Offer for Sale (OFS) Details

IndianIPOBlog April 18, 2017 0

Retail Discount

Issue open on: April 19, 2017 (For Non Retail) and April 20, 2017 (Retail category)

Name of the Seller: The President of India, acting through and represented by the Ministry of Mines, Government of India

Number of shares being offered for sale:

Upto 9,66,46,444 equity shares (Base offer Size) and Upto 9,66,46,444 equity shares (Oversubscription option)

Face Value: Rs.5/- per share

Floor Price: Rs.67/- per share

Reservation portion for Retail: 20%

Discount to Retail: 5% to the cut-off price

Tuesday, February 21, 2017

BEL OFS - Retail Investor Discount

IndianIPOBlog February 21, 2017 0

Retail Discount

Retail Investors participating in the Offer for Sale (OFS) of Bharat Electronics Limited (BEL) would be entitled to a discount of 5 percent on the issue price

The floor price for the OFS is priced at Rs.1498 which is a discount of 4 percent on the closing market price on 21-Feb, 2017

The issue would be open for Non Retail category on 22-Feb-2017 and for Retail Category on 23-Feb-2017

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Bharat Electronics Ltd - BEL Offer for Sale (OFS)

IndianIPOBlog February 21, 2017 0

OFS in February 2017

Bharat Electronics Ltd - BEL Offer for Sale (OFS)

The government will start 5 percent stake sale in state-owned aerospace and defence company Bharat Electronics Limited (BEL) to raise about Rs 1,600 crore through Offer for Sale (OFS) route

The share sale will be through an offer for sale (OFS) spread over two days - first day for institutional investors and the second day, on Thursday, for retail investors, a top official said. Thus, the OFS would be open for Non retail investors on Feb-22 and for Retail investors on Feb-23

The sale of shares under the OFS will be at a floor price of Rs 1,498 apiece which is about at a 4% discount to today's closing price of BEL on BSE

Saturday, December 10, 2016

Should you bid at Floor Price or Cut off price in an Offer for Sale (OFS)?

IndianIPOBlog December 10, 2016 0

OFS Floor Price

Should you bid at Floor Price or Cut off price in an Offer for Sale (OFS)?

An Offer for Sale (OFS) is the sale of securities by an already listed company. The offer is valid generally for a day or two and is normally to comply with the minimum public shareholding requirement.

Difference between Floor Price and Cut off price

In an OFS, floor price is a base price or the minimum price at which the sale of shares would take place. For retail investors, however, there is a unique option of bidding at"Cut off" price.

Bidding at Floor price and above ensures that the bids will be considered. Allocation in such cases shall be subject to final price discovery. Bidding at "cut-off" ensures that the retail investor will get allotment where the allotted quantity will depend upon the demand at various price points.

Whether to bid at Floor price or Cut off price?

As mentioned above, Floor price is the minimum price at which the bids may be placed. In an Offer for Sale (OFS), the final price is determined basis the demand and supply and price bids received during the offer

Thus, when you bid at Floor price, you are essentially offering to buy shares only if the price which is determined is fixed (i.e. Floor price), On the other hand, when you bid at Cut-off price, you are essentially expressing the offer to buy shares at whatever price is determined through the mechanism

Hence, Bidding at "cut-off" ensures that the retail investor will get allotment where the allotted quantity will depend upon the demand at various price points

How to buy shares in an OFS

IndianIPOBlog December 10, 2016 0

OFS subscription

Investors can buy shares in OFS through existing Trading Members of NSE. They will have to provide bids to the Trading Member specifying the quantity and the price at which they are willing to bid for a given issue. Trading members essentially means the brokerage house with whom investor has demat and trading account

To buy shares offered under an OFS, investors can login to their online accounts with brokerage houses (in case their account is online) or get in touch with the brokerage firm to place their orders (if the account is not online)

There is a Floor price or a base price defined for the OFS. Investors can place price bids at any price greater than or equal to the floor price announced. In addition to price bids, "Sellers" may provide retail investors option to bid at "cut-off", where the allocation to retail investors shall be made based on the cut-off price determined in the non-retail category. The cut-off mechanism is similar in OFS as it is in case of an IPO. There is no minimum bidding quantity in case of an OFS unlike an IPO. Investors can place bid even for 1 equity share.

As far as OFS allotment status is concerned, the stock exchanges share allotment report with Trading Members (i.e. Brokerage firms) at the end of the day i.e. after 6:00 P.M. on the day of OFS. Investors can get the information from their trading members on the same day

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