FPO stands for Follow-on Public Offer, which is a process through which a company that is already listed on a stock exchange issues new shares to the investors or existing shareholders. This is done to raise capital to expand or pay off debt, or to diversify the equity base of the company. An FPO is used by companies after they have gone through the process of an IPO and want to make more of their shares available to the public. There are two main types of FPOs: dilutive and non-dilutive. In a dilutive FPO, new shares are added, which results in a decrease in earnings per share (EPS) and a reduction in the share price. In a non-dilutive FPO, existing private shares are sold publicly, and the money goes directly to the individual offering and not to the company. The per-share earnings of the company do not get affected in this case. FPOs are a way for companies to tap into the capital markets and raise additional funds without going through the process of an IPO again.