Glossary

Offer for Sale (OFS)

Offer for Sale (OFS) is the part of an IPO where existing shareholders sell their own shares to the public, with the proceeds going to those sellers, not the company.

What It Means

Offer for Sale (OFS) is the part of an IPO where existing shareholders, usually promoters or early investors, sell shares they already own directly to the public. The company itself doesn't issue any new shares in this portion, and it doesn't receive the money either. That money goes straight to whoever sold.

Example

Say a ₹40 crore IPO is split ₹30 crore as a fresh issue and ₹10 crore as OFS. The company gets to keep and use the ₹30 crore for its own growth. The ₹10 crore goes to the promoters or investors who sold their existing shares, not to the company's balance sheet at all.