OFS on WebNotes

How to participate in an OFS on Zerodha

Tue, 12 May 2026 00:00:00 +0000

An Offer for Sale (OFS) is a mechanism through which promoters or large existing shareholders of a listed company sell their shares to investors through the stock exchange platform, without the company issuing new shares. No fresh capital is raised by the company; the proceeds go directly to the selling shareholder.

OFS is used primarily for:

Government disinvestment of Central Public Sector Enterprises (CPSEs).
Promoters reducing their stake to comply with minimum public shareholding (MPS) norms (25% for most listed companies under SEBI LODR Regulations).
Large institutional shareholders exiting their positions.

Zerodha enables retail and non-institutional investors to bid in OFS through Kite, similar to IPO applications, and charges no brokerage on OFS transactions. This guide should be read alongside OFS on Zerodha for the full product overview.

Corporate action order charges at Zerodha

Mon, 11 May 2026 00:00:00 +0000

Overview

Corporate actions are events initiated by a listed company that affect its outstanding securities. When a corporate action requires or allows shareholders to submit orders (such as subscribing to a rights issue, tendering shares in a buyback, or applying for an Offer for Sale), the broker may place these orders on the client’s behalf. At Zerodha, corporate action orders placed through the broker’s platform carry a charge of Rs 20 per order plus 18 percent GST (total Rs 23.60 per order).

OFS on Zerodha

Mon, 11 May 2026 00:00:00 +0000

An Offer for Sale (OFS) is a mechanism through which promoters or large shareholders of a listed company sell their existing shares to the public through the stock exchange platform, without the company issuing new shares. OFS is used primarily by:

Promoters of listed companies reducing their stake to comply with minimum public shareholding (MPS) norms.
The Government of India for disinvestment of Central Public Sector Enterprises (CPSEs).

Zerodha enables retail and non-institutional investors to participate in OFS through Kite, similar to IPO applications. OFS transactions do not attract brokerage from Zerodha.