What is FPO: With the cancellation of Adani Group’s FPO, many people want to understand what it is.
What is the benefit?
New Delhi : Adani Enterprises is in the market for a few days (Adani Enterprises) FPO was discussed. Adani Enterprises FPO despite Hindenburg report (FPO) marketed. Its duration was till 31 January 2023. During this the investors replied to him. The company had brought an FPO of Rs 20,000 crore. Even after the subscription of this FPO, the company took a historic decision to cancel it. of investors (investor) It is being claimed that the company has taken this decision to avoid financial loss. Many people have a question in their mind that what is FPO? What is the benefit to the company and what is the effect on the investors.
FPO stands for Follow-on Public Offer (Follow on Public Offer), FPO is offered by any company listed on the stock market. Under this, companies raise huge amount from the market. Existing shareholders and new investors can invest in the FPO.
Many of us have heard the term IPO. So in IPO and FPO (FPO vs IPO) What is the difference after all. FPO can be issued only by listed companies. So the company which is not listed in the IPO market can withdraw it. Funds can be raised from the market through IPO.
That is, if a private company wants to raise huge funds from the market, then this company comes with an IPO. But, if a listed company raises funds then it is called FPO. It supports the future plans of the company.
There are two types of FPO. Mixed FPO (Mixed FPO) and unmixed FPO (Non-mixed FPO) These are of two types. In Mixed FPO the company brings additional shares in the market. This affects the EPS of the company. In the second type, private companies sell unlisted shares. It does not affect EPS.
A company listed in the stock market takes FPO only when the company needs large funds for future big plans. Often companies have to bring in FPOs to finance new schemes to reduce debt.
Any investor can invest in FPO through broking platform. Of course, this is the help he has given to the company. For this he is paid handsomely. If the company earns huge profits in the future, then the investors also get strong returns.
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