{"id":6565,"date":"2021-09-20T12:48:24","date_gmt":"2021-09-20T07:18:24","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=6565"},"modified":"2025-10-07T20:15:08","modified_gmt":"2025-10-07T14:45:08","slug":"difference-between-ipo-and-fpo","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/difference-between-ipo-and-fpo\/","title":{"rendered":"Difference Between IPO and FPO (6 Points)"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f0fbb6540ae\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f0fbb6540ae\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-ipo-and-fpo\/#Difference_Between_IPO_and_FPO\" >Difference Between IPO and FPO<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-ipo-and-fpo\/#Meaning_of_IPO_Initial_Public_Offer\" >Meaning of IPO (Initial Public Offer)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-ipo-and-fpo\/#Meaning_of_FPO_Further_Public_Offer\" >Meaning of FPO (Further Public Offer)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-ipo-and-fpo\/#Difference_Between_IPO_and_FPO-2\" >Difference Between IPO and FPO<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Difference_Between_IPO_and_FPO\"><\/span><strong>Difference Between IPO and FPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_IPO_Initial_Public_Offer\"><\/span><strong>Meaning of IPO (Initial Public Offer)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong>full form of IPO is Initial Public Offer<\/strong> it refers to the process of offering shares of a company to the public for the first time. A new company or an existing company that had raised its capital earlier from promoters or other investors may offer its shares to the public when it is in need of fresh funds. The first time, the company offers its shares to the public is called an <strong>Initial Public Offer<\/strong>. <\/p>\n\n\n\n<p>Before IPO, a company is not a listed company and its shares are privately held. But after IPO, a company becomes a listed company and its shares can be bought and sold by investors in the open market.<\/p>\n\n\n\n<p>A company can make an IPO through the fixed price Issue method or the Book-Building method.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO-1024x576.jpg\" alt=\"Difference Between IPO and FPO\n\" class=\"wp-image-6568 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-IPO-and-FPO.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_FPO_Further_Public_Offer\"><\/span><strong>Meaning of FPO (Further Public Offer)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong>full form of FPO is Further Public Offer<\/strong>. When a company issues shares to the public after an IPO, it is called a Further (Follow-on) Public Offer. Thus, every issue of shares by a listed company after its IPO is called as FPO. <strong>FPO<\/strong> leads to an increase in the subscribed capital of a company.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Fixed Capital and Working Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Owned Capital and Borrowed Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-debenture-and-share\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Debenture and Share<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Preference Shares and Equity Shares<\/a><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Difference_Between_IPO_and_FPO-2\"><\/span><strong><a href=\"https:\/\/cleartax.in\/s\/ipo-vs-fpo-difference\" data-type=\"link\" data-id=\"https:\/\/cleartax.in\/s\/ipo-vs-fpo-difference\" target=\"_blank\" rel=\"noopener\">Difference Between IPO and FPO<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Points<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong>Initial Public Offer<\/strong><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong>Further Public Offer<\/strong><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1) Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">IPO refers to an offer of securities<br>by an unlisted Public Company to<br>the public for the first time.<\/td><td class=\"has-text-align-center\" data-align=\"center\">FPO means an offer of securities<br>by a listed Public Company to the<br>public to raise subsequent capital.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2) Type of issuer company<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is issued by an unlisted Public<br>Company.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is issued by a listed Public<br>Company.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3) When issued<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is usually issued by an existing<br>company which wants to raise<br>capital from the public for the<br>first time.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is usually issued by a listed<br>Public company when it wants<br>to raise further capital from the<br>public.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4) Order of issue<\/td><td class=\"has-text-align-center\" data-align=\"center\">IPO proceeds FPO. IPO is the<br>first time sale of shares to the<br>public.<\/td><td class=\"has-text-align-center\" data-align=\"center\">FPO is always done after IPO.<br>FPO is the second or subsequent<br>sale of shares to the public.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5) Listing<\/td><td class=\"has-text-align-center\" data-align=\"center\">The company has to get itself listed for the first time before issuing IPO.<\/td><td class=\"has-text-align-center\" data-align=\"center\">A company making an FPO is<br>already a listed company.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6) Risk<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is very risky for the investor as<br>he cannot predict the company\u2019s<br>performance.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is less risky for the investor as<br>he has an idea of the company\u2019s<br>past performance and can judge<br>its future performance.<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":6568,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[2596],"class_list":["post-6565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc","tag-difference-between-ipo-and-fpo"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=6565"}],"version-history":[{"count":4,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6565\/revisions"}],"predecessor-version":[{"id":39347,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6565\/revisions\/39347"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/6568"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=6565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=6565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=6565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}