live cases : OFS of Buterfly gandhimati and Marson ltd
*gandhimati ALLOCATION METHODOLOGY is PRICE PRIORITY
**Marson ltd ALLOCATION METHODOLOGY is PROPORTIONAL
WHAT IS THE DIFFERENCE?
@ShubhS9
In price priority method, allotment is done at multiple prices.
Let us say say clearing price comes up Rs. 90, then every bidder who has bid 90 or above will get shares at price which they bid for (if you bid 95, you will be allotted at 95)
In proportionate basis method, allotment is done at single price.
So anyone who bid at clearing price or above will get shares at clearing price on proportional basis.
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In the price priority allocation method: The Allocation is done at multiple prices. In this method, the highest price bidder gets maximum preference, with every bidder above the clearing price getting allocation on a price priority basis.
While in the proportionate allotment method: The allocation is done at a single price. In this method, every bidder who has bid at or above the clearing price gets allocation on a proportionate basis.
This FAQ from BSE explains about OFS in detail. Do check it out.
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