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What is FPO in the Stock Market?

Learn more about important trading and financial terms here. Need more help? Our team is ready.

A Follow-on Public Offer (FPO) is a public offering of shares by a company that is already listed on a stock exchange. Generally, in an FPO, a company issues “new shares”, which allows it to raise additional capital (after its IPO).

An FPO differs from an OFS because a fresh issue in an FPO increases the company’s share capital, while an OFS involves existing shareholders selling their shares. 

FPO vs IPO Difference in India

FPOIPO
Offered by an already listed companyUsed when a company first offers shares to the public and wants to be listed
Takes place after the company’s IPO/listingTakes place before the company’s initial public listing
Can raise additional capital through a fresh issueCan raise capital through a fresh issue
Investors receive shares in an already listed companyInvestors receive shares as part of the company’s initial public offering

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