Fresh Issue

Fresh Issue is when a company issues new shares to raise money in an IPO.

Fresh Issue refers to the process where a company creates and sells new shares to the public to raise funds.

The money collected from investors goes directly to the company and is used for purposes like:

Business expansion

Repaying debt

Working capital needs

However, issuing new shares increases the total number of shares, which may reduce the ownership percentage of existing shareholders.

Example:

If a company issues new shares worth ₹100 crore in an IPO, the money raised will be used by the company for its growth and operations.