Harshita Oswal

For starters, let me tell you what an OFS is. Offer for Sale (OFS) mechanism has been introduced to facilitate promoters to dilute/offload their holding in listed companies. Hence, no new shares are created as promoters are the sellers and investors (retail/non retail) are buyers. In an OFS, company sets a ‘floor price.’ Buyers cannot bid at a price below the floor price. Once the bids are placed, shares are allocated to the different buyers. Usually an OFS is priced at a small discount to the existing share price. However, the trend these days makes me wonder why prices surge up just prior to OFS. Well not just that, most of the times share price shoots up prior to the OFS and then OFS is announced at the time when the stock is priced at its high with a floor price which is paired with some discount to the surged up price (which eventually is its original stock price before the stock run) and post OFS stock price is probably lying near to its discounted/original price for about months...

  Have you ever wondered, T+2 day concept making you profits or saving money? Well, not joking at all! Trust me; next time when you trade into the stock markets, you’d look at this concept like a game changer. “T” being the transaction date, the abbreviation “T+2” refers to the settlement date of security that occurs on a transaction date (T) plus 2 trading days. All stocks are currently settled on T+2 basis. For example, if one sells shares on Monday, the shares will actually be deducted/debited from his demat account on Wednesday. Remember Yes Bank FPO ? In July 2020, Yes Bank announced an FPO to raise INR 15,000 crore from the market. In a follow-on public offer (FPO), an already listed company issues fresh shares to new investors or existing shareholders. Companies take the FPO route after they have been through the IPO process. Key data for Yes Bank FPO FPO Price band – INR 12-13 Open - Wednesday, July 15, 2020 Close – Friday, July 17, 2020 Allotment - Wednesday,...