Initial Public Offer and Further Public Offer
Q.4 (4) Initial Public Offer and Further Public Offer
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Answer:
| Points | Initial Public Offer (IPO) | Further Public Offer (FPO) |
|---|---|---|
| Meaning | First issue of securities by an unlisted company to the public. | A fresh issue of securities to the public by a company already listed. |
| Issuer | Unlisted company, usually new or newly converted private company. | Existing listed company. |
| Listing | Leads to listing of the company on a stock exchange. | Company is already listed. |
| Price information | No market price available; price based on valuation by issuer and merchant banker. | Market price is available as a guide for pricing. |
| Track record | Investors have little information and track record. | Investors know the company's performance and market history. |
| Risk | Higher risk for investors. | Comparatively lower risk. |
| Purpose | To raise capital and get listed for the first time. | To raise additional capital for expansion, diversification, etc. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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