FPO stands for Follow-On Public Offer in the stock market. It helps listed companies raise more capital by selling additional shares.
This can be used to lower debt, dilute promoter ownership, or fund future plans.
There are two kinds of FPOs: Dilutive and Non-dilutive.
Dilutive FPOs raise more capital and lower EPS by increasing shares.
Non-dilutive FPOs involve existing shareholders selling, not affecting EPS.
1. An IPO is the initial sale of company shares to the public, while an FPO involves a company with an existing IPO selling additional shares.
2. Investor interest depends on performance and market conditions, with IPOs often having high demand. IPOs raise substantial capital for expansion and other needs.
3. FPO happens subsequent to a company's initial public offering (IPO), whereas IPO takes place when a company becomes publicly traded for the first time.
4. FPO refers to a company's second instance of selling shares to the public, while IPO signifies the initial sale of shares by a publicly traded company.