The shares of Mazagon Dock Shipbuilders Ltd., a government-owned defense company, took a hit on April 4, falling by as much as 6% in early trading. This drop came after the government announced plans to sell a 4.83% stake in the company through an Offer For Sale (OFS). The floor price for the sale has been set at ₹2,525 per share, which is nearly 8% lower than the previous day’s closing price.
The government currently holds an 84.8% stake in Mazagon Dock, and this sale is part of its ongoing plan to reduce its holdings in state-run enterprises. The OFS is open for non-retail investors today, while retail investors can place their bids starting Monday, April 7.
For retail investors, an OFS provides an opportunity to buy shares at a potentially lower price. Investors can place their bids at the floor price or choose a higher price. The bidding process helps determine the final share price based on investor demand. If there is a high demand for the shares, investors might receive fewer shares than they originally bid for, but any excess blocked funds are returned.
To participate in the OFS, investors need to log in to their trading accounts, navigate to the corporate actions section, and select the OFS option. You must then choose between the retail and non-retail categories before placing your bids. If you want to buy at the floor price, you must select the “market order” option. Unlike regular trading hours that end at 3:30 PM, bids for the OFS can only be placed until 3 PM.