OFS vs IPO: 3 Ways You Pay Less as Retail Investor
When the government sells its shares in a PSU company via OFS, retail investors get a special discount. But many Indians don't know how OFS works, how to bid, or whether it's worth the risk.
An OFS discount can save you ₹200-500 per lot — more than a week's chai budget at ₹20 a cup.
Government OFS oversubscribed — here's what retail investors must know before bidding
Key Takeaways
Log in to your broker app (Zerodha, Groww, Upstox, etc.) and search 'OFS' under the IPO/OFS section to place your bid before the retail window closes.
Check the floor price announced by the company and bid at or above it — bidding exactly at floor price maximises your chance of allotment at the lowest possible cost.
Ensure your demat-linked bank account has sufficient balance, as funds are blocked via ASBA the moment you place a bid and released within 2 days if unallotted.
When the government sells its shares in a PSU company via OFS, retail investors get a special discount. But many Indians don't know how OFS works, how to bid, or whether it's worth the risk.
Here's what happened: Hindustan Copper's Offer For Sale opened for retail investors after non-retail demand came in at over 3 times the shares available in the base issue.. The Government of India, as the promoter, is offloading a portion of its stake in the PSU through this OFS route to meet disinvestment targets.. Retail investors are offered shares at a minimum 5% discount to the final price set during the institutional bidding window, per SEBI rules..
What you should do: Log in to your broker app (Zerodha, Groww, Upstox, etc.) and search 'OFS' under the IPO/OFS section to place your bid before the retail window closes.. Check the floor price announced by the company and bid at or above it — bidding exactly at floor price maximises your chance of allotment at the lowest possible cost.. Ensure your demat-linked bank account has sufficient balance, as funds are blocked via ASBA the moment you place a bid and released within 2 days if unallotted..
Pro tip: In an OFS, bidding at the cut-off price (not just the floor price) increases your allotment probability — retail slots often go unfilled because investors don't know they can bid above floor.
If you're considering settling a loan, our loan settlement guide walks through the process.
Explore TARA — Your Financial Co-Pilot
Retirement, tax, EMI, refinance and savings calculators — all free. Get a plan aligned to YOUR income, goals and CIBIL.
Try TARA — Free →References
- [1]“Hindustan Copper OFS Opens For Retail Investors; Stock Rises Over 3%” NDTV Profit - Latest · 26 Aug 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.