An Offer for Sale (OFS) is a simpler method that allows the promoters of a company to sell their shares to institutional and retail investors through exchanges and reduce their holdings transparently.
RELATED FACTS: -
Offer for sale is shorter and easier way to raise capital by the promoters. But only those shareholders who have more than 10% stake in a company are allowed to benefit from offer for sale.
Offer for sale have some special reservations as: -
Minimum 10% of offered shares have to be reserved for retail investors and
Minimum 25% of the offered shares are reserved for insurance companies and mutual funds.