The Financial Products Offered by the Company (FPO) Brackets Secondary Ipo, also

known as Follow-on Public Offering, is a process whereby existing shareholders

can sell their stake in the company to new investors.
~ To raise funds for growth initiatives like new projects or acquisitions.
~ Pay down debit
~ Increase liquidity i.e number of shares available for trading.
We can only go for existing share holders not for non-exsiting share holders
whereas in FPO both the cases is applicable existing as well as non existing
share holders.Types:
- Dilutive FPO --> Company issues additional shares in market.
It reduces overall EPS which automatically
reduces share prices.
This further reduces existing shareholder's
investment
- Non-Dilutive FPO --> Existing shareholders sell their privately held shares to
public
It doesn't increase the company's total
number of shares
Unlike dilutive FPOs, it doesn't reduce
EPS,share price or existing shareholder's investment.

An IPO is a public offering of shares of ownership in a company, allowing

individual investors to buy into a business that has been successful enough to
go public and sell shares. Secondary IPOs offer--> investors--> opportunity to
buy--> well-established companies with a proven track record of success. Ways to
launch an IPO - Fixed price offering and Book building offering
~ In Fixed price offering, company determines a fixed price for the offered
shares
~ Investors suscribe to IPO at the predetermined fixed price
~ In Book building offering, company determines prices by the demand of the
shares
~ Company sets a price band for the IPO shares for investors to submit bids
~ The maximum difference between floor price and cap price is 20%

IPO's Success indicator

#1 Suscription Status - In Undersubscribed public demand for shares > available
shares. Underwriters purchase leftover shares to prevent IPO failure, IPO
undersubscription = Possibly an unsuccessful IPO(for investors). Whereas in
oversubscribed public demands for shares > offered shares.
#2 Listing Price -IPO's final success is determined by shares listing price.
Once shares are listed, all active investors have the opportunity to
participate. the listing price influenced by the demand and supply dynamics may
be higher or lower than the offered price. This may result in immediate gains or
losses for IPO investors.

Real Experiences
1. Uber Technologies Inc.: Uber Technologies went public with its IPO in 2016.
It raised over $8 billion through the sale of nearly 20 million shares. The
company's valuation was initially around $60 billion, but has since declined to
around $37 billion due to various factors including the COVID-19 pandemic and a
lawsuit filed by Alphabet Inc. which claimed that Uber copied its software
technology.
2.Zomato Inc.: Zomato became public company in 2021. Zomatos's IPO was offered
by book building method. The price band was Rs.72 to Rs.76. IPO was
oversubscribed approximately 38x. Shares were alloted to applicant investors for
Rs.76. On July 23,2021 the shares were listed on stock exchange at Rs.115