FPO Follow-on-public offering

FPO (Follow-on Public Offer) is when a listed company issues additional shares to the public after its IPO to raise more capital.

Unlike IPO (first-time offer), an FPO comes after listing to meet expansion, debt repayment, or other funding needs.

Mainboard FPO

• Conducted by companies listed on the Mainboard exchanges (NSE/BSE main platform).
• Usually involves large, well-established companies.
• Subject to stricter SEBI regulations and larger minimum application sizes compared to SME.

SME FPO

• Conducted by companies listed on the SME Exchange platform (NSE SME – Emerge, BSE SME).
• Designed for small and medium enterprises that are already SME-listed and need more funds.
• Rules are lighter compared to mainboard to encourage SME fundraising.

FPO Reservation

FPO has upto 50% shares reserved for insitutional investors, minimum 35% for retail investors and minimum 15% for high net-worth individuals.