{"id":74,"date":"2024-05-20T11:33:21","date_gmt":"2024-05-20T11:33:21","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=74"},"modified":"2024-05-21T06:35:40","modified_gmt":"2024-05-21T06:35:40","slug":"follow-on-public-offer-fpo","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/follow-on-public-offer-fpo\/","title":{"rendered":"Follow on Public Offer (FPO)"},"content":{"rendered":"<p>A follow-on public offering, or FPO, is a method by which companies that are already listed on the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-exchange\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stock exchange<\/a> issue <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>shares<\/a> to the public. It is not the same as an <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ipo\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>IPO<\/a>, which occurs when a firm first offers its shares to the public.<\/p>\n\n\n\n<h2 id=\"types-of-fpo\" class=\"wp-block-heading\">Types of FPO<\/h2>\n\n\n\n<p><br>There are two options for a firm to conduct a follow-on public offering:<\/p>\n\n\n\n<h3 id=\"dilutive\" class=\"wp-block-heading\">Dilutive<\/h3>\n\n\n\n<p>Dilutive FPO refers to a new share offer that raises the company&#x2019;s total outstanding shares.<\/p>\n\n\n\n<p>The company&#x2019;s board of directors releases fresh shares for public sale. The corporation uses an FPO to support expansion efforts or pay off debts. The ITI Ltd. FPO is a recent example of a dilutive FPO in the Indian stock market.<\/p>\n\n\n\n<p>Indian Telecom Industries Ltd., or ITI, is a Bangalore-based telecom manufacturing firm. It is a public firm.<\/p>\n\n\n\n<p>ITI has offered a fresh offering of 18 crore shares at a price range of Rs 71 to 77 per share. This was done to enhance the public shareholding while diluting the government&#x2019;s position in the corporation, which was more than 85% in January.<\/p>\n\n\n\n<p>However, later in February 2020, ITI withdrew its FPO, citing current market conditions.<\/p>\n\n\n\n<h3 id=\"non-dilutive\" class=\"wp-block-heading\">Non-dilutive<\/h3>\n\n\n\n<p>Non-dilutive, as the name implies, does not dilute existing shareholdings. The shares issued in a non-dilutive IPO are already in circulation. This means that the directors or the larger <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shareholders\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shareholders<\/a> sell their shares and make them available to the public.<\/p>\n\n\n\n<p>The non-dilutive FPO provides no material benefits to the corporation. It is typically used to modify the shareholding ownership arrangement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A follow-on public offering, or FPO, is a method by which companies that are already listed on the stock exchange issue shares to the public. It is not the same as an IPO, which occurs when a firm first offers its shares to the public. Types of FPO There are two options for a firm [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-74","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/74","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/74\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=74"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}