Full formBusiness & Corporate
FPOstands forFollow-on Public Offer
Full Form of FPO
What is FPO?
A Follow-on Public Offer (FPO) is a process by which a publicly traded company issues additional shares to investors after its initial public offering (IPO). In India, FPOs are regulated by the Securities and Exchange Board of India (SEBI) and are commonly used by companies to raise capital for expansion, debt repayment, or other corporate purposes. The FPO can be either a dilutive offering, where new shares are created, or a non-dilutive offering, where existing shareholders sell their stakes. It is a key instrument in the Indian capital markets, allowing companies to access funds without taking on debt. FPOs are often announced during periods of strong market sentiment or when the company’s stock is trading at attractive valuations. For students preparing for banking and finance exams like the RBI Grade B or SEBI Grade A, understanding the difference between an IPO and an FPO is essential. The pricing of an FPO can be at a discount or premium to the current market price, influencing investor demand. In recent years, several Indian companies have successfully raised funds through FPOs, reinforcing their role in the country’s economic growth.
FPO का फुल फॉर्म
फॉलो-ऑन पब्लिक ऑफर
Example
The company's FPO was oversubscribed five times, indicating strong investor confidence in its growth prospects.
FPO — frequently asked questions
What is the full form of FPO?
FPO stands for Follow-on Public Offer, a process where a listed company issues additional shares to the public after its IPO.
How is an FPO different from an IPO in India?
An IPO is the first time a company sells shares to the public, while an FPO occurs after the company is already listed and seeks additional capital.
Why do Indian companies opt for an FPO?
Companies opt for an FPO to raise funds for expansion, reduce debt, or allow existing shareholders to exit, especially when market conditions are favourable.