Yesterday (20/04/2017), I placed order on Q to buy OFC of NALCO at cut off price (48 quantities). Money is not deducted from my trading account up till now (21/04/2017 08:18am). How can I know the status for the same? And where can I find cut price?
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I have same doubt
If money is not debited from your trading account then shares are not allotted to you.
Allottment price was Rs.69.8, that is whoever have bid for Rs. 69.80 or above are the only ones who would have received the allotment.
Cut off price was Rs.67.00. Since the issue was over-subscribed, people who have bid at cut-off or below allotment price haven’t gotten allotment because there were bids placed higher than them.
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Thank you Roopa…
I am new to OFS concept. So if somebody interested in OFS, how should he apply to get guaranteed allotment?
I have applied at cut off price using q but I have neither received any confirmation of my application nor did money deducted. Also I could not see share allotment in kite/q OR any intimation mail/contract notes from zerodha. When should I expect this.
I applied at cut off price but even then there is no money deduction or share allotment or contract notes. Not even any acknowledgement that NALCO OFS has been applied on behalf of you.
There is no concept of guaranteed allotment in OFS. Its price priority method, the higher the bid price, the higher the chances of allotment.
For example: The issue size is 1000 shares with the floor price of Rs.10, cut off price is Rs.10 (Cut off price is decided based on non-retail category bidding on T day, you can always check the cut off price on NSE/BSE website on the day of retail category bidding, T+1 day as shown below in the image)
https://tradingqna.com/uploads/default/original/2X/d/da0f34bc3c6e004044d353312379f4370f24227a.png
A bid for 500 shares at Rs. 25
B bid for 250 shares at Rs. 20
C bid for 500 shares at Rs. 15
D bid for 200 shares at Rs. 12
E bid for 700 shares at cut off
Since the issue size is 1000 shares and that is fully subscribed, now the allotment will be based on price priority.
A gets 500 shares at Rs.25
B gets 250 shares at Rs.20
C gets 250 shares at Rs.15
All other bids will receive no allotment.
Please note, bidding at cut off price in OFS doesnt guarantee the allottment unlike IPO.
Hope this gives the basic idea of how OFS allottment works.
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