As the promoters continue to offload shares through the Offer-For-Sale (OFS) route for meeting the Sebi's minimum public shareholding norm, retail investors and High Net Worth Individuals (HNIs) are busy buying them as the prices are discounted enough to lure them.
Media report suggested over 50 per cent of bids in the non-institutional category received in the 40 OFS issues so far this year have been from retail investors and high net worth individuals. These investors together bid for shares worth Rs 6,785 crore in these 40 issues so far, while institutional investors, who don't have to pay all the money for shares up front, bid for shares worth Rs 13,039 crore.
Analysts said that retail investors, who were inactive for long time, especially since after they lost money in mid-cap crash, have found OFS an interesting route as most shares are offered at deep discount.
Meanwhile, Sebi has asked companies to ensure 25 per cent public shareholding norm is met by June 3 and market regulator chairman has warned that deadline will not be extended.