What is fresh issue size in IPO?

Fresh issue size in an IPO refers to the portion of the IPO where the company issues new shares to raise capital directly for its use. The company typically uses the proceeds for purposes such as expansion, debt repayment, or working capital.

Key Points:

• It increases the company's equity base.
• The funds go to the company, not existing shareholders.
• It dilutes existing shareholding since new shares are added.
  

Example:

If an IPO has:

• Fresh issue: ₹300 crore
• Offer for sale: ₹200 crore
• Total issue size: ₹500 crore
  Then, the fresh issue size is ₹300 crore.