5 pc quota likely for retail investors in offer for sale

NEW DELHI: The Department of Disinvestment is working on tweaking the offer-for-sale (OFS) mechanism for PSU stake sale by carving out a separate 5% category for retail investors.


“We are looking at creating a separate bucket for retail investors. We will be discussing with Sebi if 5% could be reserved for retail buyers,” a senior finance ministry official told PTI.

In the PSU stake sale under OFS mechanism or the auction route, retail investors get a very small portion as bulk of the issue is cornered by institutions, who put bids at rates higher than the base price. In public issues — initial public offer (IPO) or follow-on public offer (FPO) — 35% is reserved for retail investors.