What Is an IPO and FPO?

An IPO (Initial Public Offering) is when a company offers its shares to the public for the first time and gets listed on a stock exchange. Before an IPO, the company’s shares are not available for public trading.

An FPO (Follow-on Public Offer) is when an already listed company issues additional shares to the public to raise fresh capital.

The key difference:

  • IPO – Company listing for the first time. No prior market price history on the exchange.
  • FPO – Company already listed. You have market data, financials, and price history to refer to before applying.

Both require you to apply during the offer period. If allotted, the shares are credited to your DEMAT and begin trading on the listing date.

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