Millennium Post

OFS route gains momentum for stake sale, firms raise Rs 14,000 crore

With the revival in the stock market, the companies are cosying up to a new and simple route of stake dilution, Offer for Sale [OFS], and seven firms have already hit the market to sell shares through this route.The OFS route was introduced by SEBI early this year and allows the companies to sell shares in a simplified process on the stock market platform through a one-day bidding.Together, a total of seven companies have used the method to sell stake in the past seven months, with the largest being the Rs 12,666-crore issue by state-run energy major ONGC in March this year.Other companies that tapped the route include Wipro, Jaiprakash Power Ventures, D B Corporation, Muthoot Capital, Adani Power and Sical Logistics.Except Wipro, all other issues were fully subscribed.

The route was introduced by SEBI to help the companies meet the 25 per cent minimum public shareholding, for which the deadline ends next year.'OFS issues are relatively much easier as compared to other conventional issues like FPOs. Huge cost is involved in the conventional routes and at the same time they are time-consuming also,' Anil Rego, Founder & CEO, Right Horizons said.
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