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What is an FPO i.e follow on public offering?

A follow-on public offer (FPO) is the process of issuing shares to investors or the existing shareholders by a public company that is already listed on an exchange.

An FPO is essentially a stock issue of additional shares made by a company that is already publicly listed and has gone through the IPO process.

FPOs are popular methods for companies to raise additional equity capital in the capital markets through a stock issue and diversify their equity base.

The application process is similar to that of IPOs. Click here to check the process to apply for an IPO through Zerodha.