Difference between IPO( सार्वजनिक प्रस्ताव )
and FPO
Initial Public Offering refers to the shares offered to the public investors by the companies for the first time by listing the company in a stock exchange.
Follow-on Public Offering refers to the additional shares offered to the public investors by the companies which are already listed in a stock exchange.
IPO Vs FPO
S.No. | IPO(Initial Public Offering) | FPO(Follow-on Public Offering) |
1. | Initial Public Offering refers to the shares offered to the public investors by the companies for the first time by listing the company in a stock exchange. | Follow-on Public Offering refers to the additional shares offered to the public investors by the companies which are already listed in a stock exchange. |
2. | The main objective of issuing IPOs by the companies is to raise capital through public investment and to increase exposure, prestige, and public image. | The main objective of issuing FPOs by the companies is to restructure their business or raise funds for new business or to expand the existing business. |
3. | The rate of risk is high in case of IPOs as an individual investor cannot predict what will happen to the initial trading in the coming days. | The rate of risk is low in case of FPOs as an investor already has an idea about the investment and future growth of the company. |
4. | In case of IPOs there are extremely stringent regulatory requirements which are costly and time-consuming. | In case of FPOs there are less regulations,cost and less time-consuming as compared to IPOs. |
5. | IPOs are considered usually more profitable than FPOs. | FPOs are considered usually less profitable than IPOs. |
6. | IPOs can be of two types:
|
FPOs are of two types:
|
Similarly,
- Public Offering Vs Private Placement
- Traditional Financing Vs Microfinancing
- Microcredit Vs Microfinance
- Direct Finance Vs Indirect Finance
- Investment Vs Speculation
- Public Limited Company Vs Private Limited Company
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