OFS- Offer for Sale-How to make money

• OFS- Offer for Sale is the new mantra in Dallal street.
• SEBI has mandated all companies to reduce the promoter stake to 75% in order to protect the minority investors.
• So promoter holding more than 75% has 2 options either dilute his stake or delist the company by accruing the stake.
• While som years back many company where ready to delist, now the mantra has changed to be listed, which gives better valuation (most companies are more than 25X of their PE).
• So how do you benefit from OFS or dilution of stake by promoter is by subscribing to good compaines OFS, usually they are below the market price by upto 5%.
• Once you subscribe you will be alloted shares based on the price discovered.
• You can sell these share in open manret after you receive the share to earn some quick bucks.