What are FPO and IPO in the share market?
Recently there is news of Adani Group withdrawing its FPO. At present, there has been a stir in the stock market due to this news. Since this news, the word FPO is in a lot of discussions. If you are a new investor, then questions must be arising in your mind regarding this term. So let’s know what is the difference between FPO and IPO.
First of all, know what is IPO. IPO i.e. Initial Public Offering is the process by which a company brings its shares to the stock market for the first time. Whenever a company makes its shares available to the common people, they first come into the primary market. Where common people buy its shares. After this these shares come to the secondary market where you and I buy and sell them.
Now let’s talk about FPO. Whenever the company wants to raise additional funds, it brings some of its shares to the market. Already listed companies bring their FPO to raise additional funds. It means following on public offering. These shares are first offered to the shareholders of the company after which it comes into the market for the general public.
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