Imagine you’re playing cricket with your friends. If one player holds the bat 90% of the time, the others hardly get a chance to play. The game feels unfair, participation drops, and the team spirit fades.
The same thing happens in stock markets when promoters hold too much of a company. Investors like you and me don’t get enough room to participate. That’s where SEBI’s Offer For Sale (OFS) rule comes in — a mechanism designed to keep the game fair and balanced.
Today, we’ll explore four stocks — ITI Limited, Punjab & Sind Bank, Bajaj Housing Finance, and IRFC — all of which currently have high promoter shareholding above SEBI’s 75% limit. This raises a big question: Will these companies be forced to bring an OFS soon?
Let’s dive deeper into what this means for investors, why promoter holding matters, and how you can use this knowledge to make smarter market decisions.
🔑 What is an Offer for Sale (OFS)?
An Offer for Sale is when promoters or large shareholders sell a part of their stake in the open market. Think of it as a clearance sale — not because the business is bad, but because SEBI insists promoters can’t keep more than 75% ownership in a listed company.
- ✅ Purpose: To increase public shareholding and market liquidity
- ✅ Impact: More investors can buy the stock, making it widely traded
- ✅ Example: If promoters hold 90%, they must sell at least 15% to bring it down to 75%
For retail investors, an OFS can be both an opportunity (entry at a discount price) and a risk (temporary selling pressure on the stock).
📊 Stock 1: Punjab & Sind Bank — A PSU Giant With Over 90% Promoter Holding
Punjab & Sind Bank is a government-owned bank offering everything from savings accounts to MSME loans. It also supports agricultural lending, housing finance, and digital banking.
Promoter Holding Story
- 2017: 79.62%
- 2018: 85.56%
- FY22–FY24: 98.25%
- 2025: Still at 93.85%
This is way above SEBI’s 75% cap, meaning an OFS is almost inevitable.
Why It Matters
- Government stake sale could improve liquidity
- Wider participation might boost market confidence
- But heavy selling could create short-term price volatility
🧠 What You Should Remember
Punjab & Sind Bank may soon see an OFS to reduce government holding. Investors must be cautious about timing — opportunities come with short-term risks.
📊 Stock 2: Bajaj Housing Finance — Private Player with Strong Promoter Grip
Bajaj Housing Finance, part of the Bajaj Group, specializes in home loans, property loans, and developer financing.
Promoter Holding Story
- March 2025: 88.75%
- June 2025: 88.70%
Still far from SEBI’s 75% requirement, which makes an OFS highly probable in the coming quarters.
Why It Matters
- Bajaj Group’s brand creates investor trust
- OFS could provide retail entry into a quality NBFC
- Potential volatility around the event
🧠 What You Should Remember
Bajaj Housing Finance is a strong business but heavily promoter-owned. A future OFS could be a golden chance for long-term investors if valuations are attractive.
📊 Stock 3: Indian Railway Finance Corporation (IRFC) — Funding India’s Rail Dreams
IRFC is the financial backbone of Indian Railways, leasing trains, wagons, and infrastructure while raising funds from domestic and global markets.
Promoter Holding Story
- Steady at 86.36% since March 2021 till June 2025
Way above SEBI norms, making it a clear candidate for an OFS.
Why It Matters
- IRFC plays a critical role in India’s railway modernization
- Wider public shareholding could make it a more actively traded PSU stock
- Investors must track whether the OFS is priced attractively
🧠 What You Should Remember
IRFC is a long-term India growth story, but promoter shareholding needs correction. A future OFS may open doors for retail investors.
📊 Stock 4: ITI Limited — Telecom & Defence Tech Pioneer
ITI Limited manufactures telecom equipment, defence communication tools, IoT devices, and smart meters. It also provides network solutions and data center services.
Promoter Holding Story
- 2017: 94.86%
- 2019: Around 90%
- 2025: Still hovering near 90%
This means ITI too will likely face pressure to bring an OFS.
Why It Matters
- Telecom + defence exposure makes ITI a strategic company
- Wider shareholding could boost investor participation
- But OFS timing will decide how retail investors benefit
🧠 What You Should Remember
ITI is strategically placed in India’s telecom-defence ecosystem. High promoter holding means an OFS is only a matter of time.
⚖️ Why SEBI Enforces the 75% Rule
You might wonder: why is SEBI so strict about this?
Here’s why:
- Fair Play: Prevents promoters from controlling almost everything
- Liquidity: Ensures enough shares are available for trading
- Transparency: More shareholders bring accountability
- Global Standards: Aligns India with international governance norms
Think of it as a cricket match again. If one batsman hogs the strike, the audience loses interest. But when everyone gets a chance, the match is more exciting and fair.
🚀 Investor Strategy: How to Play OFS Events
If you’re an investor, here’s how to navigate OFS situations smartly:
- Track Announcements: SEBI filings, exchange notifications, and news updates
- Look for Discounts: OFS often comes with price concessions to attract buyers
- Don’t Rush: Wait to see how the market reacts post-OFS
- Think Long-Term: If the business is strong, temporary selling is an entry opportunity
- Diversify: Don’t bet heavily on one OFS stock
🌱 Final Thoughts
The four companies we discussed — Punjab & Sind Bank, Bajaj Housing Finance, IRFC, and ITI Limited — all have high promoter holdings that exceed SEBI’s limits. Sooner or later, each of them may need to launch an OFS.
For investors, this is both a challenge and an opportunity. The key is timing, patience, and understanding the business fundamentals.
Remember, in the stock market, it’s not just about catching the ball — it’s about knowing when to catch and when to let it pass.
