Hi doston - angel broking ke is podcast mein aapka swagat hai.
Doston, IPOs are all the craze these days - sabhi log IPOs ke baare mein baat kar rahe hain, and many are applying for them too. Kal meri neighbour Shalini mujhe ek recent IPO ke baare mein pooch rahi thi. I told her ki maine apply toh kiya hai, but I’m not sure if I’ll get the allocation. And she was worried about the same.
Fir main uske ghar chai peene chala gaya, aur uske bhai Nikhil se baat karte karte hum OFS ke baare mein discuss karne lage. Both of them knew little about it, and then we talked about it at length. Kal mujhe pata chala ki my neighbours are avid investors - and that they keep themselves up to date with the market news.
Achcha hum kis baare mein baat kar rahe the? Arre haan - OFS! Kya aap bhi jaanna chahte ho, ki what OFS are and how to apply for them?
Toh chaliye dekhte hain.
Doston IPOs ke baare mein toh aap jaante hi ho - IPOs ke zariye companies apne business ke liye kai investors se capital raise karti hain. OFS bhi kuch aisa hi process hota hai - except that OFS, ya fir Offer for Sale ek company tabhi issue kar sakti hai, jab woh already publicly trade ho rahi ho. Basically, OFS ke through companies capital raise nahi karti hain - aur is process mein unko zyada complicated procedures ke through nahi guzarna padta.
That is why companies sometimes go for an OFS rather than an FPO. Achcha FPO aur OFS ke beech aap difference jaante ho?
Doston FPOs mein naye shares create hote hain, aur ek OFS mein basically company ke promoters apne shares ko external entities ke liye offer karte hain. OFS ke procedures mein ek rule hai jo kehta hai ki retail investors ko offered shares mein se 10% reserve kiye jaana chahiye - aur insurance aur mutual fund companies ke liye 25%. Sounds interesting, haina?
Toh what’s in it for you? Aapko OFS mein invest karne mein kya fayda hai? Aur agar koi benefit hai, toh aapko iske liye kaise apply karna hai? Let’s find out!
Doston iske benefits samajhne ke liye aapko kuch aur OFS procedures se familiar hona zaroori hai. For example, OFS me aap basically offered shares ki prices bid kar sakte ho - and the highest bids are given the allotments. Alternatively, aap cut off price par bhi purchase kar sakte ho - yani ki, that minimum price at which the shares are being offered in the OFS.
One benefit to note here is that aapko OFS mein zyada paperwork karne ki zaroorat nahi hoti hai. Saath hi, aap OFS ke zariye ek single share bhi khareed sakte ho - unlike the issue size that determines the minimum amount you would have to invest in an IPO or an FPO.
Achcha, ek retail investor hote hue, aapko OFS mein do major benefits hote hain - apart from the ones we have already talked about.
OFS mein companies retail investors ko floor price par discounts deti hain. Aur second, isme ek regular investment trade ki tarah, aapko sirf securities transaction charges aur transaction fees pay karna padti hai.
Sounds cool, haina? Wondering how to apply to it? Nikhil aur Shalini ne bhi mujhe yahi poocha tha. They were surprised when I gave them the complete picture - that I am going to give you now!
Doston OFS mein participate karne ke liye aapko ye dhyan mein rakhna hai, ki they are open for only 3-10 days, and these remain open from 9:15 AM to 2:45 PM only. Next, aapko ye samajhna zaroori hai, ki agar aapki bid floor price se neeche hai, toh aapko allotment nahi milegi. Isliye, agar aap cut off price par bid nahi kar rahe ho, toh knowing the right price to bid is very necessary. Once you have figured that out, toh next thing you need to know is that as a retail investor, aap 2 lakh tak ki bid hi place kar sakte ho - if your bids exceed that, then you won’t get allotments for the exceeding amount.
Ek baar aapne ye rules samajh liye, toh there is nothing more to know - OFS mein bid karna is not a rocket science.
Aur haan - ye toh aapne figure out kar hi liya hoga, ki OFS mein participate karne ke liye aapke paas ek demat ya trading account hona chahiye - if you don’t want to go through your dealer for it, that is.
Agar aapke paas demat account hai, toh fir kya hai - apne trading portal par log in karke aapko sirf apni bid place karni hai. Sounds simple, haina? I bet it does. And next time, when you hear that an OFS is opening up, you will know ki if it is the right opportunity, toh ye aapke liye kitna simple procedure hai.
And that’s all you need to know! If you found our podcast interesting, then we bet ki aapko www.angelbroking.com par free educational resources aur bhi pasand aayenge - do check them out!
Until then, I’ll go back to talk to Nikhil - hum log ek upcoming IPO ke baare mein discuss karne ja rahe hain, over tea! Milte hain next time - until then, goodbye from Angel Broking, and happy investing!