The process or structure how shares are offered to the public during the IPO.
IPO Sale Type means the way in which a company offers its shares to the public during an Initial Public Offering (IPO).
There are mainly two types:
The company issues new shares to raise money. The money goes to the company for growth, debt repayment, etc.
Example: Shanti Gold International IPO of Rs, 360.11 crore was entire fresh offer. The capital raised through IPO intended to be utilized for capital expenditures, working capital, repayment of company's borrowings, and other general purposes.
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Existing shareholders (like promoters or investors) sell their shares. The money raised via OFS goes to the selling shareholders, not the company.
Example: NSDL IPO of Rs 4,010.95 crore was 100% OFS.
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Many IPOs are a combination of Fresh Issue + OFS.
JSW Cement IPO was offered through a fresh issue of Rs 1,600 crore and an offer for sale of Rs 2,000 crore.
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