IPO stands for Initial Public Offering, which is the first time a company goes public by offering its shares to the public at large and getting listed on the stock exchanges of the country. The primary objective of an IPO is to raise capital from investors by selling its shares to the general public to grow and expand its business.

FPO stands for Follow-on Public Offer, which is the issuance of shares after the company is listed on a stock exchange. In other words, an FPO is an additional issue while an IPO is the first issue. The reason behind the company performing an FPO is to expand its equity base. The company uses FPO only after the company has started the process of an IPO to make their shares available to the public and to raise capital for their business.

Here are some key differences between IPO and FPO:

• Meaning: IPO is the first issuance of shares by a company while an FPO is the issuance of shares by a company so they can raise additional capital after its IPO.
• Price: In an IPO, the price is either fixed or variable as a range, while in an FPO the price is dependent upon the number of shares as they increase.
• Objective: The primary objective of an IPO is to raise capital from investors by selling its shares to the general public to grow and expand its business, whereas the primary objective of an FPO is to expand its equity base.
• Types: There are two types of FPOs: dilutive and non-dilutive. In dilutive FPO, the additional number of shares are issued by the company, but their price value of the company’s share still remains the same. This decreases the share price as well as the reduction in earnings per share. Non-dilutive FPO is done by selling the existing shares of the com...