FPO (Follow-On Public Offering)

FPO (Follow-On Public Offering) – A Follow-On Public Offering (FPO) occurs when a publicly listed company issues additional shares to the market after its initial public offering (IPO). These shares are offered to existing and new investors to raise extra capital for the company’s strategic and operational needs. Key Features: Issued by already listed companies on a stock exchange. Helps raise additional funds for expansion, debt repayment, acquisitions, or R&D. Can be dilutive or non-dilutive, depending on whether new shares are issued or existing shares are sold by current shareholders. Offered to the general public or institutional investors.

Example: A company listed on the stock exchange issues 10 lakh new shares through an FPO to raise ₹50 crore, which it uses to expand its production capacity.