Article / GuideIPO

IPO Vs FPO: Key differences to know

Last updated August 22, 2026

This IPO News guide/article covers “IPO Vs FPO: Key differences to know”. The page is organized around what is ipo, what is fpo, ipo and fpo similarities, types of ipo, 1. fixed price ipo. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

What is IPO
What is FPO
IPO and FPO Similarities
Types of IPO
1. Fixed Price IPO
2. Book Building IPO
Types of FPO
1. Dilutive FPO
2. Non-Dilutive FPO
Key differences between FPO and IPO
Reasons to Issue FPO
IPO and FPO Example in Share Market
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Frequently Asked Questions
1. What is the difference between FPO and IPO?−
2. Which is better IPO or FPO?+
3. Is it good to invest in FPO?+
4. How to apply for FPO?+
5. Is FPO only for existing shareholders?+
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Key Facts

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Companies with a minimum market capitalization of Rs 25 crore can issue IPOs (unlisted companies) or FPOs (listed company).
In both IPO and FPO, company shares are listed on the BSE and NSE.
Both the IPO and FPO have a minimum of 35% shares reserved for retail investors (who invest upto Rs 2 lakh).
For example, if a company conducts an IPO at an offer price of Rs 50/share, it is a fixed price issue. Since the price is fixed, all those bidding for the IPO are bidding at a fixed price.
In a book-building IPO, the issuer company sets a price range or price band say Rs 50 – Rs 60. The upper end of the price band is called cut-off price.
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Anyone above 18 years age with a demat and trading account can participate in FPO. Applying for FPO is the same as that of IPO investment.

Data Tables

Basis of Difference	IPO	FPO
Meaning	First-time issue of company's shares in the market.	Additional issue of shares to the public by a listed company.
Nature of Company	IPO is announced by a non-listed company to list its shares on the exchange.	FPO is offered by an already listed company.
Primary Market or Secondary Market	IPO is issued in the primary market.	Dilutive FPO where new shares are offered is a primary market product whereas non-dilutive FPO is a secondary market issue.
Documents	A company files DRHP and RHP for SEBI's approval to launch IPO.	Companies only need to file RHP for FPO, DRHP is not required.
Regulatory Framework	Strict regulatory requirement as companies going public has to follow stringent regulatory process such as filing IPO prospectus, financial reporting, corporate governance standards, etc.	FPO has comparatively less regulatory framework than IPO.
Price	IPO can be a fixed price issue or book-building issue offered at a price range.	FPO is usually offered at a discount to the current market price of share.
Share Capital	The IPO can be offered by issuing new shares called fresh issue or by selling the promoter's share called offer for sale.	In dilutive FPO, the company issues additional shares so share capital increases whereas in non-dilutive FPO, promoters sell their privately held shares thus, share capital remains the same.
Ownership Dilution	When new shares are issued (Fresh issue), it dilutes ownership but in offer for sale, there is no dilution happens.	Dilutive FPO, as its name, as companies issue additional shares which result in equity dilution. Whereas no dilution takes place in non-dilutive FPO which is similar to OFS.
Risk	IPOs are more risky as companies are at early stage.	Listed companies have a proven track record and visibility, therefore, FPOs are less risky.
Return	IPOs provide early stage access hence, considered as a lucrative investment opportunity. More and more investors are interested to apply in high-quality IPOs.	FPOs generally well-received by existing investors or people who are familiar with the company.

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