OFS, buyback, rights issue and NCD explained

Offer for sale (OFS)

Promoters of an already listed company sell part of their holding to the public through a special exchange window. The company does not receive the money.

Buyback

A company buys back its own shares from shareholders, either by tender offer (shareholders on a record date can tender shares at a fixed price, usually above the market price) or through the open market. It returns surplus cash to shareholders and reduces the number of shares.

Rights issue

A listed company offers new shares to its existing shareholders in a ratio (for example 1 for 4) at a set price, usually lower than the market price. You can subscribe, sell your entitlement or let it lapse.

NCD (non-convertible debenture)

A debt instrument that pays interest and cannot be converted to shares. Check the issuer’s rating, tenure, interest payment frequency and whether it is secured.

Frequently asked questions

Is a buyback always profitable?

Not always. The buyback price is usually above the market price, but only a part of your shares may be accepted.

Last updated 2026-10-20. Information only, not investment advice.