Secondary Offering

A Secondary Offering is the sale of new or closely held shares of a company that has already completed its Initial Public Offering (IPO) and is listed on a stock exchange. Unlike an IPO, secondary offerings can take two forms: a primary offering (where the company issues new shares to raise fresh capital, diluting existing shareholders) or a secondary sale (where existing shareholders like promoters or private equity investors sell their stake, with proceeds going to the sellers rather than the company). In India, secondary offerings are commonly structured as Qualified Institutional Placements (QIPs) or Offer for Sale (OFS) transactions, regulated by SEBI.