Difference Between FPO and IPO

Key Difference: IPO vs. FPO. IPO is the first public issue of the shares of a private company that is going public whereas FPO is the second or subsequent public issue of the shares of an already listed public company.

1. What does FPO mean in shares?
2. What is the difference between IPO and APO?
3. Is it good to invest in FPO?
4. Who can participate in FPO?
5. What does FPO stand for?
6. How is FPO price calculated?
7. What is an additional public offering?
8. Is Yes Bank FPO worth investing?
9. Should I buy Yes Bank FPO?
10. Should I invest in Yes Bank?

What does FPO mean in shares?

A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO).

What is the difference between IPO and APO?

An alternative public offering (APO) is the combination of a reverse merger with a simultaneous private investment of public equity (PIPE). It allows companies an alternative to an initial public offering (IPO) as a means of going public while raising capital.

Is it good to invest in FPO?

An FPO is relatively a safer bet for individual investors and new investors. Investing in an IPO requires more research than FPO. ... If you are a long term investor, with a good risk appetite and have faith in the company, you can consider investing in an IPO.

Who can participate in FPO?

Market participants like mutual funds, individuals, FIIs, qualified institutional buyers and insurance companies can bid for an FPO. On the other hand, promoters can only participate as sellers in the process. There are differences between an FPO and an OFS.

What does FPO stand for?

APO stands for Army Post Office, and is associated with Army or Air Force installations. FPO stands for Fleet Post Office, and is associated with Navy installations and ships. DPO stands for Diplomatic Post Office and is associated with U.S. embassies overseas.

How is FPO price calculated?

For the Rs 15,000 crore that YES Bank is looking to raise from the FPO, the price band would imply issuance of fresh shares of Rs 1,154-1,250 crore. Given that the existing number of outstanding shares in the bank is around Rs 1,255 crore, the FPO would imply a 50 per cent dilution in existing base.

What is an additional public offering?

A secondary offering is the sale of new or closely held shares by a company that has already made an initial public offering (IPO). ... The proceeds from this sale are paid to the stockholders that sell their shares. Meanwhile, a dilutive secondary offering involves creating new shares and offering them for public sale.

Is Yes Bank FPO worth investing?

Most analysis and stock brokers recommended investing in Yes Bank FPO. Despite the troubles it has gone through in recent times, the retail investors could invest for short team gains as well as for the long term. ... This means chances of getting allotment increase when you apply for shares worth of Rs 2 lakhs.

Should I buy Yes Bank FPO?

The Yes Bank FPO at 50% discount to its current market price opens today. ... Given the current chaotic state of the bank, should investors subscribe to the FPO offering a hefty discount. While most equity analysts ask investors to stay away, som analysts believe it is a good buy.

Should I invest in Yes Bank?

Since YES Bank was in a bad financial position, shares were sold to new investors at very low prices and therefore, the new investors now hold around 90 per cent of the company. This means that even if the company does quite well going forward, new investors will capture most of the value.