The FPO Full Form in Share Market is Follow-on Public Offer. This process allows companies already listed on the stock exchange to offer additional shares to investors. Companies typically use FPOs to raise funds for various purposes, such as business expansion, debt repayment, or to allow existing shareholders to sell some of their shares. Unlike an Initial Public Offering (IPO), which marks a company’s first time entering the stock market, an FPO is meant for companies that are already publicly traded.

Types of FPOs

There are two main types of FPOs:

1. Dilutive FPO: In this type, the company issues new shares, increasing the total number of shares available. As a result, the earnings per share (EPS) may decrease because profits are distributed among more shares.
2. Non-Dilutive FPO: Here, the company does not create new shares. Instead, existing shareholders sell their shares. Since no new shares are issued, the total share count remains unchanged, and the EPS stays stable.

Factors Influencing FPO Success

Several factors affect the success of an FPO. These include the stock market’s performance, the company’s financial health, industry trends, and regulatory conditions. A favorable market, strong company performance, and positive industry outlook improve the chances of a successful FPO.

In summary, the FPO Full Form in Share Market stands for Follow-on Public Offer, and it serves as a key financial tool for publicly traded companies.