BANKING AFFAIRS

Detailed explanation-1: -A follow-on public offer (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Follow-on offerings are also known as secondary offerings.

Detailed explanation-2: -Definition: FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base.

Detailed explanation-3: -FPO abbreviated as Follow-on Public Offer is a process in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors.

Detailed explanation-4: -Examples of FPO Some examples of the well-known companies that have issued FPOs in India are Tata Steel Ltd., Power Finance Corporation Ltd, Engineers India Ltd, Power Grid Corporation of India etc.

Detailed explanation-5: -FPO vs IPO IPO is the first sale of shares to the public while FPO is Follow on Public Offer. FPO typically occurs after the company has completed an IPO. FPO also allows investors to increase their stake in a company. It also provides an opportunity to new investors to buy stakes in a company.