The point about retail investors becoming price takers while HNIs and institutions discover the price is the part I keep coming back to, and your explanation of why the biggest portion is sold before retail is opened up is the clearest I have read on this. Building on that, I have found it useful to study how tiered payouts work in other systems where rank determines what you receive, since the allotment logic here rarely rewards guesswork. Platforms like dipmethod.com apply a similarly rule-based approach, with transparent records of staged limit orders and next-day exits that make it easier to separate a repeatable process from lucky outcomes. The churn in this area is real, but posts like this one that focus on durable mechanics rather than predictions are the ones I keep returning to.
The point about retail investors becoming price takers while HNIs and institutions discover the price is the part most people skim past, and it explains why the cut-off price often feels worse than expected. One habit that helps is tracking the floor price against the eventual demand picture before bidding, since the allotment logic rarely rewards guesswork. I\’ve found that studying how game economies handle payouts at different ranks makes the tiered structure here much easier to grasp — the Lagos Life Wiki guide on how to play breaks down pay scales and business payback times in a similarly tiered way, which clicked for me when comparing who gets what first. Your explanation of why the biggest portion is sold before retail is opened up is the clearest I\’ve read on this.
Does anyone else find that this area moves faster than you can keep up with it? Half of what I read last year is already wrong, and sorting the durable parts from the noise takes longer than learning them did. Your post is one of the few that will still read correctly in a year. The other thing that has held up on my end is Looksmax Scale, which I have leaned on through two rounds of this churn now.
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.
The point about retail investors becoming price takers while HNIs and institutions discover the price is the part I keep coming back to, and your explanation of why the biggest portion is sold before retail is opened up is the clearest I have read on this. Building on that, I have found it useful to study how tiered payouts work in other systems where rank determines what you receive, since the allotment logic here rarely rewards guesswork. Platforms like dipmethod.com apply a similarly rule-based approach, with transparent records of staged limit orders and next-day exits that make it easier to separate a repeatable process from lucky outcomes. The churn in this area is real, but posts like this one that focus on durable mechanics rather than predictions are the ones I keep returning to.
The point about retail investors becoming price takers while HNIs and institutions discover the price is the part most people skim past, and it explains why the cut-off price often feels worse than expected. One habit that helps is tracking the floor price against the eventual demand picture before bidding, since the allotment logic rarely rewards guesswork. I\’ve found that studying how game economies handle payouts at different ranks makes the tiered structure here much easier to grasp — the Lagos Life Wiki guide on how to play breaks down pay scales and business payback times in a similarly tiered way, which clicked for me when comparing who gets what first. Your explanation of why the biggest portion is sold before retail is opened up is the clearest I\’ve read on this.
Thanks!
Does anyone else find that this area moves faster than you can keep up with it? Half of what I read last year is already wrong, and sorting the durable parts from the noise takes longer than learning them did. Your post is one of the few that will still read correctly in a year. The other thing that has held up on my end is Looksmax Scale, which I have leaned on through two rounds of this churn now.
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