New Delhi, Oct. 29 -- While the current landscape of the IPO market is bustling with new entries, it's important to revisit the basics and analyze the two key components of an IPO utilised for fundraising i.e fresh issues and offers for sale (OFS), which are essential to every offering.

A fresh issue refers to the process of raising new capital, which can only be done by a company. In a fresh issue, the company issues new shares, and all proceeds from this fresh issue go to the company, resulting in an increase in the company's share capital. The second type is an offer for sale, which involves the sale of existing shares held by various parties, including promoters and investors, such as private equity (PE) investors. Thus, there are th...