Structure

Fresh Issue vs Offer for Sale

Where does the IPO money go? New shares versus existing shareholders selling.

3 min read

Fresh issue

In a fresh issue, the company issues new shares and receives the proceeds, subject to the stated objects and expenses.

In an offer for sale, existing shareholders sell shares and the sale proceeds generally go to those selling shareholders.

An issue may include both components. The offer document discloses the split.

This article is for educational purposes only and is not investment advice. Investments in securities markets are subject to market risks.

How a company offers its shares to public investors, and what the offer document tells you.

Different platforms, different liquidity, trading-lot and risk characteristics.

Price band, lot size and minimum application amount — what they mean when you bid.