FPO

FPO stands for Follow-on Public Offering, which is the process of issuing new shares to the public by an already listed company in the stock exchange. In simpler terms, it is a type of public offering made by a company that has already gone public in the past. The main aim of an FPO is to raise additional funds for expansion or meet other financial requirements.

 

FPOs can benefit both the investor and the company in several ways:

 

Investor benefits: An FPO can offer investors an opportunity to buy more shares in a company that they already own or missed out on buying in the IPO. It can also provide an opportunity to buy the shares at a discounted price compared to the current market price.

 

Company benefits: An FPO allows a company to raise capital without incurring debt, which can be used for expansion, mergers and acquisitions, debt reduction, research and development, and other corporate purposes. It can also improve the company's liquidity and market value.

 

In summary, FPOs are a way for companies to raise funds and expand their business while offering investors an opportunity to invest in a publicly listed company.