Dear members,
Pls tell me what is the difference between FPO and Right Issue ?
Are both one and the same thing ?
What is the procedure for FPO? Is it same as IPO?
Pls reply...
3 Replies
Rakesh
(Executive- Commercial & CMA final student)
(179 Points)
Replied 19 October 2011
Hi..right issue is made to current shareholders only..N in case of FPO (Further public offer) any one can participate & acquire the shares of the co..
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 19 October 2011
As far as I think, in both the cases, shares are firstly offered to existing shareholders and remaing to the public at large.
ars
(CS)
(445 Points)
Replied 19 October 2011
Pls tell me what is the difference between FPO and Right Issue ?
FPO stands for further or follow on public offer. it is issued subsequent to IPO.
Are both one and the same thing ?
NO. right issue is made to the existing shareholders only. it is their right to subscribe to the sh. cap. of the co. pl. ref sec81, wheras the FPO is dealt with u/sec81(1A). It is issued to general public as in IPO.
What is the procedure for FPO? Is it same as IPO?
Differs- In Rights u need to send the CAF i.e. Composite application form to all the existing shareholders, comprising of acceptance of rights and renounciation thereof.
FPO is similar to IPO.
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