FPOs in India & its Impact on Indian Business Ecosystem
In the ever-growing startup ecosystem of India, having sufficient capital to start or run the business is very important to pursue the market objectives. As the public-listed ventures constantly endeavoring to innovate, flourish, grow, and standardize their positions in the market, FPO serves as a strategic facilitator to propel them to develop by permitting them to rise funding even so many years after the initial stages.
Instead of ballooning debts burden, FPO unlocks the door for investments from external investors who comes forward to invest after seeing the innovation and performance of the business in the market.
At the focus, FPO grants a strategic plot for companies and guides them supremacy to catch the cumulative capital to chase its organizational and financial goals. So here let’s delve into the article to witness the Strategic impact of FPOs & its role in Indian Business landscape - 2024.
Difference between IPO & FPO in Indian Startup Ecosystem
IPO – Initial Public Offering is significant process in Indian startup ecosystem in which the startup or a company presents its shares for first time to the public restructuring the privately traded venture into publicly traded venture. This process is adopted to rise essential funding for the startup’ growth and development accompanied with a comprehensive regulatory process administered by the market regulator, SEBI - Securities and Exchange Board of India.
On other hand, FPO – Follow-on Public Offering is a succeeding share issuance of the company which is publicly enlisted already. Primarily, FPOs are conducted to upraise the additional funding to minimize the stakes of existing investors and enhance the company’s liquidity in the marketplace. At the end, both the FPOs and IPOs includes public sale of shares, but they happen at diverse stages of the firm’s overall lifecycle and cater the various financial demands for strategic practices and purposes.
