---
title: "Why is the cut-off price higher for retail OFS orders?"
description: "The cut-off price for retail OFS orders can be higher because it depends on the institutional demand received on the first day of bidding."
category: console
subcategory: corporate-actions
slug: why-is-the-cut-off-price-higher-for-retail-ofs-orders
canonical: https://support.arrow.trade/console/corporate-actions/why-is-the-cut-off-price-higher-for-retail-ofs-orders/
---

# Why is the cut-off price higher for retail OFS orders?

> The cut-off price for retail OFS orders can be higher because it depends on the institutional demand received on the first day of bidding.

## Short answer

The cut-off price for retail OFS orders can be higher because it depends on the institutional demand received on the first day of bidding.

## How the OFS bidding process determines the cut-off price

During an Offer for Sale (OFS) issue, orders are collected over two days:

Day 1: Institutional and HNI orders (bids above ₹2 lakhs) are accepted. Based on these bids, a cut-off price is determined for the second day.

Day 2: All retail bids are taken. The cut-off price from Day 1 becomes the floor price for your retail bids.

## When the cut-off price varies

Low institutional demand: The cut-off price for your retail bids may be the same as the institutional bids.

Strong institutional demand: The cut-off price for your retail bids may be significantly higher.

Bids from individuals and HUFs (Hindu Undivided Families) worth less than ₹2 lakhs are considered retail bids.

## Related

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---

Source: https://support.arrow.trade/console/corporate-actions/why-is-the-cut-off-price-higher-for-retail-ofs-orders/
Publisher: Arrow / iRage Broking Services LLP