Coal India OFS - Offer for Sale happened on the 31st of Jan 2015 with a
floor price of Rs 358. OFS is done through a separate window on the NSE & BSE.
The OFS comprises an offer for sale of 31,58,18,220 equity shares of face value of Rs.10 each with an option to sell an additional upto 31,58,18,220 equity shares of face value of Rs.10 each of the company. Collectively aggregating to 10% of the total paid up equity share capital of the company
What is the Bid Procedure in case of OFS ?- Retailers had to Bid for Rs 358 or Higher through their Brokers and they would be given a 5% discount to the Bid Price if allotted.
- 20% of the Issue was Reserved for Retail Indian Investors [Bidding for Less than Rs 2.0 Lakh in Value]
- Retail Portion was subscribed by just 0.46 times
- OFS Bids can be modified until 3.30PM looking at the demand and how desperate you are to get the shares.
You can View the
Government of India Notification on Terms of Allotment to Retail in OFS hereWhat is the Allotment Procedure for Retail in case of OFS ?1. There is no CUT-OFF provision and thus you will have to enter some value greater than or equal to the Floor Price i.e Rs 358 in this case.
2. Allotment discount of 5% will be applied on the Bid price and not on the Floor Price
3. In case of OVER-SUBSCRIPTION, Proportionate Allotment will be done starting from the Highest Bidder. Suppose, Sunil Bid for 500 Shares at Rs 400, he will be the first one to be allotted all the 500 shares at Rs 400 - 5% discount i.e Rs 400 - Rs 20 = Rs 380. This is known as - allocation on price priority method at multiple clearing prices.
4.
IMPORTANT NOTE In case of the OFS Not Getting Fully Subscribed and if you have BID at Rs 400, you will still be allotted at Rs 400 - 5% discount and not at the FLOOR PRICE.
