Net Offer

Net offer is the net value of shares made available to the public after considering the reservation quota in the issue.

An IPO offer can include a reservation of a certain number of shares/issue size for eligible employees. The issue size less the reservation is referred to as the Net Offer.

Net Offer is also known as Net Issue. In SME IPOs, market makers are required to subscribe specific portion of the issue. The issue remaining after the Market Maker Reservation Portion is known as the Net Issue.

For example, a company announces an IPO with an issue size of Rs 100 crores. The offer includes a reservation of Rs 50 crores for the employee subscription. Thus, the Net offer available to the public is Rs 950 crores.

Answered on 2023-01-13