FPO Full Form in Share Market

What is the Full Form of FPO in The Share Market?

The FPO Full Form in Share Market is Follow-on Public Offer. Think of it as a way for companies that already have their seats at the stock exchange table to invite more folks to buy new shares. They might want to bulk up their wallet for big moves like expanding, clearing debts, or making sure their existing shareholders can sell off some shares easily. It’s different from an IPO (Initial Public Offering), which is like a company’s debut event on the stock exchange. An FPO is more like an after-party for companies that are already playing the stock market game.

Types of FPOs

When we dive into FPOs, there are a couple of flavors they come in:

  • Dilutive FPO: This is when the company decides to print more shares to sell. More shares mean the earnings per share (EPS) get spread thinner.
  • Non-Dilutive FPO: This one’s about selling shares that already exist in the back pockets of current shareholders. No new shares are made, so the total share count and the EPS stay the same.

Factors Affecting FPO Success

A successful FPO doesn’t just happen, it’s influenced by a few key things. The stock market’s mood, how well the company’s doing, the vibe of the industry, and the rulebook of regulations all play a part. If the market’s on a high and the company’s killing it, the chances of an FPO winning big are better.