What is an FPO (follow-on public offer)? (2026)
An FPO, or follow-on public offer, is when a company that is already listed on the NSE or BSE issues additional shares to the public to raise more money. It runs under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The key word is "follow-on": the company has already done its first public issue and is now going back to the market for more capital, or letting existing holders sell down, through a fresh public offer with a filed offer document.
Definition
An FPO (follow-on public offer)
is an issue of additional shares to the public by a company already listed on an exchange, to raise more capital. It runs under the SEBI ICDR Regulations, 2018, with a filed offer document and a price band. It follows a company's earlier initial public offer. Source: SEBI.
What is the difference between an IPO and an FPO?
Both are public offers, but they happen at different stages of a company's life. This is the distinction people search for most:
| IPO | FPO | |
|---|---|---|
| Company status | Not yet listed | Already listed and trading |
| What it is | First sale of shares to the public | Additional sale of shares to the public |
| Price discovery | No prior market price | A live market price already exists |
| Regulation | SEBI ICDR Regulations, 2018 | SEBI ICDR Regulations, 2018 |
Because an FPO comes from a company that already trades, there is a public price and a track record to read before the offer, which an IPO does not have.
What are the types of FPO?
An FPO comes in two forms, and the difference decides where the money goes:
- Dilutive FPO: the company issues fresh shares. The total share count rises, and the new capital goes to the company. Existing holders are diluted unless they buy in.
- Non-dilutive FPO: existing shareholders sell part of their holding to the public. No new shares are created, and the proceeds go to those selling shareholders, not the company.
Already listed
The status that separates an FPO from an IPO
Source: SEBI ICDR Regulations, 2018
FPO vs other capital routes
An FPO is one of several routes a listed company can use. It sits next to the qualified institutions placement (QIP), which sells only to institutions, the rights issue, which offers new shares to existing holders, and the offer for sale (OFS), which is promoters selling through the exchange. For a direct comparison of the two public-market routes, see QIP vs FPO.
Each of these is disclosed to SEBI and the exchanges with a dated offer document or announcement. Flock reads those public filings and keeps each one stamped with its date and source. What an FPO means for your own decision is your call to make.
Frequently asked questions
What is an FPO in the stock market?
An FPO, or follow-on public offer, is when a company that is already listed on an exchange issues additional shares to the public to raise more capital. It runs under the SEBI ICDR Regulations, 2018, with a filed offer document. Source: SEBI.
What is the difference between an IPO and an FPO?
An IPO is the first sale of shares by a company that was not previously listed. An FPO is an additional issue of shares by a company that is already listed and trading on the exchange. Source: SEBI ICDR Regulations, 2018.
What are the types of FPO?
There are two. A dilutive FPO issues fresh shares, raising the total count and bringing new capital to the company. A non-dilutive FPO is existing shareholders selling their shares to the public, with proceeds going to those sellers. Source: SEBI.
Where is an FPO disclosed?
A company filing an FPO must file an offer document with SEBI and the exchanges under the ICDR Regulations. The offer document, price band, and issue dates are all public and dated. Source: SEBI ICDR Regulations, 2018.
Flock tracks these filings, sourced, dated, and linked back to the original. See what smart-money entities disclosed, without the guesswork about what it means.
Disclosures shown are public regulatory filings. Data may be delayed or incomplete. Smart-money entities may no longer hold positions shown. Not investment advice.