New Delhi, May 27 -- An Offer for Sale (OFS) is a process that enables current shareholders, such as promoters, government bodies, or institutional investors, to divest their ownership in a publicly traded company via the stock exchange platform. In contrast to an Initial Public Offering (IPO), an OFS does not involve the issuance of new shares and therefore does not generate additional capital for the company.

During an OFS, the ownership of existing shares is shifted from the selling shareholders to new investors. The funds from the sale go directly to the shareholders who are selling their stakes, rather than to the company itself.

A key characteristic of an OFS is that it does not involve the issuance of new shares, thereby preventi...