RVNL OFS Investors Made 170 Percent Profit In 6 Months But Discount Brokerage Firms Like Groww Clients Unable To Apply In OFS

Offer For Sale: In recent times, there are many government companies listed in the stock market in which the government has come up with Offer for Sale to sell its stake. The offer for sale is open for two days. In which institutional investors can apply on the first day, while retail investors can apply in the offer for sale on the second day. But retail investors who have demat trading accounts with discount brokerage firms like Groww and online demat account opening platforms are feeling disappointed. Such discount brokerage firms do not support offer for sale.

Companies that launched OFS made strong returns

Only last week, the Central Government had brought the offer for sale of NHPC at the price of Rs 66 per share. OFS was open for institutional investors on 18 January and for retail investors on 19 January. But on January 20, 2024, just one day after the offer for sale closed, the stock of NHPC reached Rs 80.50, 22 percent above the issue price of the offer for sale. In July 2023, the government had brought the offer for sale of Rail Vikas Nigam Limited (RVNL) at Rs 119 per share. On January 20, RVNL stock closed at Rs 320.35. Within 6 months of OFS, the stock of Rail Vikas Nigam Limited has increased by 168 percent. OFS of IRCON, HAL, SJVN also came in 2023 and the offer price level of OFS has seen a tremendous rise in the stocks.

No facility to apply for OFS in discount brokerage firm

Obviously, not only IPOs but investors investing in offers for sale of government companies have also got strong returns in the last few months. But investors who have demat accounts in discount brokerage firms like Groww are not able to invest in offers for sale, due to which such investors are not able to take advantage of the boom by investing in offers for sale of any government company.

Demat account holders of full service brokers can apply

But retail investors who have demat accounts with full service brokers like HDFC Securities or ICICI Direct can participate in the offer for sale. Investors who have demat accounts with full service brokers and those who have participated in the offers for sale of government companies have earned huge profits, just like investors who have invested in a blockbuster IPO have benefited. It has been seen that all the investors who apply in the Offer for Sale get the allotment.

How to apply for offer for sale

Investors who have demat-trading accounts with full service brokers can apply for the Fall Sale offer in the same way as they invest in an IPO. Let us know the steps to invest in OFS

1. First of all, investors will have to go to the website of full service brokers and login by entering user ID and password.

2. After this, you will have to go to the dashboard and click on the IPO/OFS link.

3. There will be different options for IPO and OFS on the link, click on OFS.

4. Select the company whose offer for sale is open and enter the number of shares you want to apply to buy.

5. Allocate funds and submit. To view your order, you can check by visiting the Order Book (OFS).

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