Objects of the Issue is the RHP section that details how the company plans to deploy the proceeds from the fresh-issue portion of the IPO. SEBI requires this disclosure with specific rupee amounts attached to each stated objective. The objects do not apply to the OFS portion, where proceeds go to the selling shareholder, not the company.
Common objects include: funding capacity expansion (greenfield or brownfield), repayment of borrowings, investment in subsidiaries, working capital, general corporate purposes (GCP), and offer-related expenses. SEBI caps GCP at 25% of fresh-issue proceeds to prevent IPO funds being used loosely.
Objects matter because they signal how the company intends to grow. A well-articulated objects section with specific capex plans and clear repayment intentions is more credible than a vague mix of general corporate purposes. Investors should compare the objects against the company's capacity to actually deploy capital productively — a healthy company that does not need the cash often makes for a poorly-structured fresh-issue IPO.