FPO stands for Follow-on Public Offer, which is a process by which a company that is already listed on an exchange issues new shares to investors or existing shareholders. This is done to diversify the companys equity base, raise capital to expand or pay off debt, or reduce the debt that is existing in the company. FPO is different from an IPO (Initial Public Offering), which is the first time a private company goes public by issuing shares to the general public to collect funds in order to grow their business.

There are two main types of FPOs: dilutive and non-dilutive. Dilutive FPOs involve the issuance of additional shares by the company, which can decrease the share price and earnings per share. Non-dilutive FPOs involve the sale of existing private shares to the public. The shares are offered at a fixed price to the public through a book-building process, with the proceeds going directly to the company. Existing shareholders may also participate in the FPO, either by purchasing additional shares or selling some of their existing ones.

FPOs are a way for companies to tap into the capital markets and raise additional funds without going through the entire IPO process again.