FPO is a medium to raise money from the market.

New Delhi:

What is FPO Follow-on Public offering:

There are many ways to raise money through public in the stock market, among which IPO and FPO are the main ones.

When the company first takes steps to raise money from the stock market, then it brings IPO and later tries to raise funds from the same people through FPO.

This is called FPO.

This is called a follow-on public offering.

In a follow on public offer (FPO)

, a public company already listed on the exchange offers to its shareholders, investors or existing shareholders to raise funds.

It can also be said that through an FPO, there is a stock issue of additional shares by a company, which is already publicly listed and has gone through the process of IPO.

Let us tell you that FPO is a very popular way of raising funds in the stock market, in which companies through stock issue raise additional equity capital in the capital market and diversify their equity base.

Understand in detail Follow-on Public Offer (FPO)?

Follow on Public Offer FPO:

Follow-on Public Offering (FPO) is the re-issuance of shares to investors through a company listed on the stock exchange.

FPO is to market the additional shares issued by the company after the IPO.

This FPO is

also called

Secondary Offering .

Explain that often companies announce FPOs usually to raise equity or reduce debt. 

There are mainly two types of FPOs in the market.

These are called Dilutive and Non Dilutive FPO.

Dilutive means new shares have been added and non-dilutive means existing private shares have been sold publicly. 

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