Interesting breakdown of the OFS allotment mechanism — especially how retail investors end up as price takers while HNIs and institutions discover the price. I’d add that just as understanding these market mechanics can help you make better trading decisions, getting a clearer read on your own psychological tendencies can be just as valuable for long-term portfolio management. I’ve recently started using an [AI palm reading tool](https://palmreading.pro/) as a lighthearted way to reflect on my risk appetite and personality traits; it obviously isn’t a substitute for fundamental analysis, but it does offer an unusual angle on self-awareness that some traders might find useful.
thanks for the very informative video…Can you please clear couple of points. 1. Why do we have different prices for different set of investors (Floor and Cut off). 2. Doesn\’t retail are at disadvantage when they have to higher as compared to Non retail. 3 How does company decide on exact Floor and Cutoff price.?
The HNIs & Institutions are the price discoverers in an OFS. The seller decides what is the minimum price they want to sell the shares at – floor. But the selling price finally depends on the demand from the large investors. Since a portion of the OFS is given to retail shareholders also, they simply become takers of the price realized by the large buyers demand.
In a multiple price issue, retail shareholders may feel they are disadvantaged since the price increases for them. However, from the perspective of the seller, it seems fair to first sell the biggest part of the OFS, figure the price and then finally open it up to retail.
Interesting breakdown of the OFS allotment mechanism — especially how retail investors end up as price takers while HNIs and institutions discover the price. I’d add that just as understanding these market mechanics can help you make better trading decisions, getting a clearer read on your own psychological tendencies can be just as valuable for long-term portfolio management. I’ve recently started using an [AI palm reading tool](https://palmreading.pro/) as a lighthearted way to reflect on my risk appetite and personality traits; it obviously isn’t a substitute for fundamental analysis, but it does offer an unusual angle on self-awareness that some traders might find useful.
Happy learning!
Why this is in hindi
Hi .
Can we have the videos in English.
We have this for now 🙂
https://youtu.be/hwiwWPrfWXU?si=_E2uXP45pP2i4GNy
tthis is awsome content thank you
Happy learning!
How can I apply for OFS of IRCON through Zerodha?
Here you go – https://support.zerodha.com/category/trading-and-markets/corporate-actions/articles/how-do-i-apply-for-ofs
thanks for the very informative video…Can you please clear couple of points. 1. Why do we have different prices for different set of investors (Floor and Cut off). 2. Doesn\’t retail are at disadvantage when they have to higher as compared to Non retail. 3 How does company decide on exact Floor and Cutoff price.?
Many thanks.
The HNIs & Institutions are the price discoverers in an OFS. The seller decides what is the minimum price they want to sell the shares at – floor. But the selling price finally depends on the demand from the large investors. Since a portion of the OFS is given to retail shareholders also, they simply become takers of the price realized by the large buyers demand.
In a multiple price issue, retail shareholders may feel they are disadvantaged since the price increases for them. However, from the perspective of the seller, it seems fair to first sell the biggest part of the OFS, figure the price and then finally open it up to retail.
Thik