What is Follow-On Public Offer (FPO)?
A Follow-On Public Offering (FPO) is a process where a company that is already publicly listed on a stock exchange issues additional shares to investors. This is typically done to raise extra capital for various purposes such as funding new projects, expanding the business, reducing debt, or improving the company's financial health. Here are some key points about FPOs: Purpose: Companies use FPOs to secure additional funding after their initial public offering (IPO). The raised capital can be used for growth initiatives, paying down debt, or other corporate needs. Types: Dilutive FPO: This type involves issuing new shares, which increases the total number of shares outstanding. This can dilute the value of existing shares but provides the company with new capital. Non-dilutive FPO: This type involves existing shareholders, such as promoters or large stakeholders, selling their shares. It does not change the total number of shares outstanding and does not raise new capital for...