“ofs” meaning in the share market? Offer For Sale.

In the context of the share market, “OFS” stands for “Offer for Sale.” An Offer for Sale is a method used by companies to sell their existing shares to the public. In an OFS, the existing shareholders, often promoters or large institutional investors, sell a portion of their shares to the public, and the proceeds from the sale go to the selling shareholders rather than the company itself.

This is different from an Initial Public Offering (IPO) where a company issues new shares to the public, and the funds raised go directly to the company for various purposes, such as expansion, debt reduction, or working capital. In an OFS, the company whose shares are being sold is not directly involved in the transaction, and it doesn’t receive any funds from the sale of shares. Instead, it provides an avenue for existing shareholders to divest their holdings and for new investors to buy shares in the secondary market.

How is an OFS different from an IPO?