I have placed bid of OFS of GMM Pfaudler @3730. The indicative price was around 3520. But in the contract note, it is showing that my stocks are purchased at 3730.
Isn’t it should be purchased at final price? I thought the final price will be the discovered price but shares were bought at price which I placed order at. Kindly help me in this
Hi there…
I had placed my bid at 3,500 [market price checked]. I have received OFS Contract Note for 3,500/-.
Apparently, I was under the impression that everyone will be allotted based on an average price. I’m not sure of that anymore.
Need to wait and watch. My first time with OFS as well.
Yes I also thought initially that allotment will be done on the final price. Also first time OFS for me as well. Feeling a little disheartened as my stocks are purchased 200 above the OFS rate. Lets see if anything positive happens
are your stocks showing in Holding?
More info on the OFS can be found here.
Stocks are not shown in the holdings yet. Settlement time is T+ 2 days. It might show up tomorrow I guess or in worst case day after tomorrow.
according to point 5 allotment will be done at final price discovery. So fingers crossed.
Yeah, even I noticed that.
From what I had understood when I took part in this OFS is that the price will be same for everyone, irrespective of the bid price. If your bid price is lower than the final price, you will not get for sure. If it’s more then it will be allotted based on the final price.
So, best option is to place the bid at offer price with market price checked and hope you will get an allotment.
According to this page of NSE, allotment price is 3500
https://www1.nseindia.com/live_market/content/live_watch/offer_sale/ofs_sale.htm
Yeah it is 3500/- as Retail was subscribed only 80%. Everyone who had applied for OFS would have got an allotment.
Let me know, what’s the amount deducted from your account.
it was deducted around 18670 which gives me rate of around 3730. Can anyone help me regarding this. Amount deducted should be 17500
I was allotted at a higher price too. According to the document published by GMM, it should be a multiple clearance price OFS and allotment would be done at the same price for every person. That is the exact reason I bid higher for a better chance at the allotment, not to pay a higher price.
I had the same issue, I read that this OFS will follow an allotment method of Price Priority at Multiple Clearing prices which meant the shares will be dispensed to everyone at an identical price. Because of this, I put up the bid at a higher price but the amount deducted was equal to the bid that I put up and not equivalent to the Allotment price which NSE’s website currently exhibits.
The GMM Pfaudler OFS was allotted on a Price Priority basis at Multiple Clearing Prices basis, can check this.
According to this BSE FAQ
Price Priority OFS: The Allocation is done at multiple prices. In this method, the highest price bidder gets the maximum preference. In this method, every bidder above the clearing price gets allocation on a price priority basis.
But in this document on page 3, it says:
Retail investors may be allocated shares at a discount to the cut-off price determined in the retail
category, irrespective of the bid price entered by them.
And just below that they have mentioned this.
Or
ii. Retail investors may be allocated shares at a discount to the bid price entered by them.
As I mentioned above.
The GMM Pfaudler OFS was allotted on a Price Priority basis at Multiple Clearing Prices basis.
Price Priority OFS: The Allocation is done at multiple prices. In this method, the highest price bidder gets the maximum preference. In this method, every bidder above the clearing price gets allocation on a price priority basis.
Okay, I recognize my misunderstanding now, thanks for clarifying! So all in all checking off the “Market price” option would be your best bet to get the optimal price while applying for an OFS, am I correct @ShubhS9?
Right.
Apparently not many knew the specifics of the OFS before the event anywhere in the forums that I was active.
Shows that there is lot to learn everyday.
yes, I also thought that allotment would be on the basis of one price. Bids equal to and more than floor price will given allotment and rest cancelled. It happens everywhere in Pre-Open Market, Illiquid Stocks Call Auction, IPO Market, IPO Pre-Open.
Well, atleast I can feel fortunate that I have not placed my bid at 4000 or more than those levels. I saw some bids at 5000 and even at 5400. Atleast we are better than them