What is IPO? | What is FPO? | What is OFS?
Initial
Public Offering (IPO)
·
When a private company for the first time sells securities to
the public in the primary market, it is known as Initial Public Offering (IPO).
·
After the shares of such private company are subscribed for and
allocated to the public in the IPO,
Ø such shares are listed
on the stock exchange in the secondary market,
Ø where they are
available for further buy and sell transactions i.e., trading.
·
Example: Tata Technologies (2023)
Follow
on Public Offer (FPO)
·
When a company which is already listed on the stock exchange,
comes up with an offer to issue additional shares to the public, such an offer
is known as Follow on Public Offer (FPO).
·
Example: Patanjali (Ruchi Soya) (2022)
Offer
for Sale (OFS)
·
When the Promoters of a company whose shares are listed on the
stock exchange, offload their holding through a seperate window provided by
exchange for the same, is known as Offer for Sale (OFS).
·
The purpose of OFS can be either to meet minimum public
shareholding norms or to raise additional funds.
·
Example: NHPC Ltd. (2024)
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