Adani Enterprise is planning for an FPO of Rs 20,000 Cr🤯🤯
But, what exactly FPO is?
How is it different from IPO & OFS?🧐
A detailed thread🧵⤵️
#finances #AdaniEnterprises #Adani
But, what exactly FPO is?
How is it different from IPO & OFS?🧐
A detailed thread🧵⤵️
#finances #AdaniEnterprises #Adani
First, let’s understand What is IPO?
The initial public offering is a method by which a privately controlled company becomes a publicly-traded company by giving its shares to the general public for the first time to raise fresh capital.
The initial public offering is a method by which a privately controlled company becomes a publicly-traded company by giving its shares to the general public for the first time to raise fresh capital.
Through commercialism, the company gets its name listed on the stock exchange market. It means interested investors can purchase the company’s shares through the stock exchange market & will become shareholders of the company.
What is FPO?
Follow on public offer is a process by which a listed company on the stock exchange can raise additional capital by offering new shares to investors or existing shareholders. FPO is used by companies to diversify their base.
Follow on public offer is a process by which a listed company on the stock exchange can raise additional capital by offering new shares to investors or existing shareholders. FPO is used by companies to diversify their base.
The only difference between an IPO & FPO is that an FPO is brought out by a company that is already listed.
Similarly, there is one more concept known as an Offer for sale(OFS)
Similarly, there is one more concept known as an Offer for sale(OFS)
What is OFS?
An OFS is diff frm IPO & FPO becoz it does nt raise any fresh capital. In this case, existing shareholder dilutes their stakes through primary market.
OFS solely ends up in transfer of ownership frm one shareholder to another & does not increase share capital.
An OFS is diff frm IPO & FPO becoz it does nt raise any fresh capital. In this case, existing shareholder dilutes their stakes through primary market.
OFS solely ends up in transfer of ownership frm one shareholder to another & does not increase share capital.
Some corporates even mix their IPO with OFS to provide a partial exit to their promoters & non-public equity (PE) investors.
To know more abt diff between these 3 terms & learn more about such financial concepts relating to stock market, do visit Quest’s FREE course on Finance terminologies - bit.ly/quest-beginner…
Also, do let us know if you hold any of Adani's share
Do retweet🔁for max reach!
Also, do let us know if you hold any of Adani's share
Do retweet🔁for max reach!
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