When a company raises funds through an initial public offer (IPO), it can either issue new shares (fresh issue) or allow existing shareholders to sell a portion of their stake, also known as offer for sale (OFS). Understanding the difference between a fresh issue and an OFS can help investors see what the company wants to achieve from its offering.
What Is A Fresh Issue Vs An Offer For Sale In An IPO?
When a company raises funds through an initial public offer (IPO), it can either issue new shares or allow existing shareholders to sell a portion of their stake. Let’s take a look at some of the recent IPOs. The Rs 1,069 crore IPO of Bharat Coking Coal, that came out in January 2026, was an offer for sale (OFS), which means the proceeds went to exiting shareholders. On the other hand, PNGS Reva Diamond Jewellery’s Rs 380 crore IPO in February 2026 was a fresh issue, which means funds raised went directly to the company. However, many companies opt for a mix of both. Understanding the difference between a fresh issue and an OFS can help investors see what the company wants to achieve from its offering.
