Difference Between Right Issue And Ipo

Difference between right issue and ipo

Difference between right issue and ipo

So.. What is FPO?

What is Rights Offering?

Usually, existing stockholders accuse the promoters/management of a company for raising money by issue FPO, if the FPO is dilutive in nature and not rewarding the shareholders adequately. But if the management is good and uses non-dilutive FPO, then the reality is just the opposite.

Difference between right issue and ipo

[Read More:What is Dilutive and Non-Dilutive FPO?]

The funds raised enable the company to pay debts, act on its growth strategy and hence benefiting the stakeholders.

FPO is offered at a discounted price than the current market price of that company stock.

So an FPO is actually a good thing for the minority stockholders.

[Read More:What is Follow-On Public Offer (FPO) in Stock Trading?]