What Is OFS in the Stock Market? Meaning & OFS vs IPO

Offer for Sale (OFS) is a process through which “existing” shareholders can sell their shares to investors through the stock exchange platform. Unlike an IPO, an OFS does not normally involve the company issuing new shares to raise fresh capital.

The shares are sold by existing shareholders, and the sale proceeds generally go to those shareholders.

OFS vs IPO Difference in India

OFS	IPO
Existing shareholders sell shares.	The company may issue new shares, and/or existing shareholders may offer shares.
Conducted through a stock exchange process.	Shares are offered to the public through the IPO process.
Proceeds from an “existing-share sale” generally go to the selling shareholder.	Proceeds from a fresh issue go to the company.

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What is OFS in the Stock Market?

OFS vs IPO Difference in India

Track NSE Stocks With Trade246

Want to Start Trading?

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