Minimum bidding price for retail on 14 July will be 1103.80 in OFS
What is the cut off price ? Why is the min price higher than 1103.8, in the news it was mentioned the floor price will be 1000 ?
Floor price was 1000 for NON RETAIL and the cut off price (minimum clearing price at which allotment made ) of non retail automatically become minimum bidding price for retail in OFS hence it is 1103.80 for retail .
99.99% OFS are on price priority basis means allocation at multiple clearing price. higher priced your bid is higher are the chances of allotment .
in most OFS floor price remain only of academic interest unless oversubscribed .
Is allotment guaranteed if we have applied at cut off price?
Whichever I have applied before this were all undersubscribed in retail category. So I always got full quantity. But this time since it’s oversubscribed I wanted to know if I can get ready answers here.
Also we should be getting the confirmation today right.
@ShubhS9 not very sure if you are the guy to be tagged here.
If oversubscribed proportionate allotment at cut off price. 1165 is cut off price for Retail in Patanjali OFS means those who bid 1165.05 and above will get firm and full allotment . 1165 bid will get proportionate allotment .
the cut off was 1103.,80 in Non retail .
Since the issue is oversubscribed, the allotment will be done on a proportionate basis at or above the cut-off price.
If you get the allotment, the shares will show on Kite under T1 holdings on Monday.
what ever quantity allocated at lowest price after allocation from highest price is cut off price .
suppose 73 shares left for allocation at cut off price and there are 80 bids…73 investors will get 1 share each and 7 will not get . this is my understanding .
AM I RIGHT …please guide. @ShubhS9
I had applied at cut off price. No allotment. Can anyone help me understand how ofs works?
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I haven’t checked details on Patanjali OFS allocation for retail investors. Let me do, will post here.
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Hi Shubh,
Please do let us know about retail allotment in Patanjali Foods OFS
I general how does ofs work. Because I was of the opinion that, if we go for cut off price, we will all get pro rata allotment.
So I went for maximum quantity under retail from all my accounts. 
Didn’t get any allotment in any of the accounts.
Only loss of charges. 
Made the same mistake (or at least was told so) with Indostar OFS. I guess with oversubscribed OFS, you need to avoid checking the cut-off price box. The only other reason I could think of is - at the retail allotment price, I didn’t have enough funds for the qty I applied (since I calculated it at 101 and not at 107).
Let me know in case you’re able to figure out the reason for non allotment.
@aniln, @Jason_Castelino and @Sudarshan_Bhandari, so the allotment price for Patanjali OFS in retail category was at Rs. 1165.0, anyone who bid at this price and above will get allotment.
Also, those who selected cut-off/floor price (the lowest price at which bid can be placed) option too won’t get allotment, since the cut-off price based on bids in non-retail segment was 1103.8.
BSE has explained how the OFS and allocation methodology works here and here.
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@ShubhS9 Does this mean non retail segment got allocation at INR 1103.8 (and above) and retail segment got allocation at INR 1165 (and above)?
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Yes. In non retail category, those who bid at 1103.8 or above would get the allotment and in retail category, those who bid at 1165 and above will get the allotment.
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So the concept of cut-off price in OFS is different from cut-off price in IPO, and that is causing the confusion.
In general, for OFS, cut-off is nothing but price discovered for non-retail.
Below explanation might help.
In normal sane world, retail should not be bidding more than institutions to get the shares, so cut-off should work out very close to retail allocation price too.
But in crazy times, retail want to buy at any price, till they think that there is some quick money is to be made (as CMP is still higher), and cut-off price becomes useless.
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Will allotment be done at different prices for different investors? Let’s say I placed an order at 1400. Will the allotment be at 1400 or the price discovered in the retail category? (That is 1165.)
99.99% OFS are on PRICE Priority BASIS where allotment is done at multiple clearing prices and lowest price where allotment is done called cut off price.
i need guidance when i say not everybody get allotment at cut off price bid since this is lowest price for allotment starting from highest price in bidding ladder . so what ever shares are left at this price will be allotted proportionately …AM I RIGHTS @ShubhS9
if it is , than how come some get allotment some do not get …in a practical world if it is proportionate allotment everybody should get some ! unless rare case where bids are by 100 people and share are 90 so 90 bidders will get 1 share each and 10 will not get anything.
you will get allotment at 1400 .