What is FPO(Follow-on Public Offer)

What is FPO?
A Follow-on Public Offer (FPO) is also called further public offer. When a listed company comes out with a fresh issue of shares or makes an offer for sale to the public to raise funds it is known as FPO. In other words, FPO is the consequent issue to the public after initial public offering (IPO). The word FPO came into news after the YES Bank announcement to raise Rs 2,000 crore through FPO and debt.

How is it different from an IPO?
As the name suggests initial public offering (IPO) is the first offer for purchase to public. This is a process when an unlisted company raises funds by offering its shares to the public and consequently gets listed on a stock exchange. However, if the same company comes out with another issue to the public, the second issue would be called an FPO. For instance, ICICI Bank was a listed entity but came out with FPO of around Rs 8,750-crore equity shares in July 2007. The issue remained open for subscription between July 19, 2007, and July 22, 2009. Similarly Bharat Earth Movers (BEML), which was listed in National Stock Exchange on November 5, 2003, came out with a public offer of 49 lakh shares in 2007. Shares of BEML were issued at Rs 1,075 after the closure of the FPO.

Under the Fast Track Issues (FTI), a listed company, which meets certain entry norms, can proceed further with FPOs by filling a copy of RHP to regulators. These companies don’t need to file a draft offer document. However, it is mandatory for a private company, which wants to come out with an IPO.

What are the other kinds of issues through which companies raise money?
Apart from IPO and FPO, a company can raise funds through a rights issue and private placement. A rights issue and bonus issue are made to the existing shareholders. However, a rights issue is also a way to raise funds but in a bonus issue new securities are issued to existing shareholders without any consideration.

OPEX & CAPEX..

Heard this terms many times here & there!!and got baffeled as to wat it is??
or went through financials of a stock and could not figure out difference between operational & capital exenditure?? :)

Just a simple explanation is below:

OPEX:
i.e. operating expense, operating expenditure, operational expense, operational expenditure

OPEX is an ongoing cost for running a product, business, or system
CAPEX-- Its counterpart, a capital expenditure (CAPEX), is the cost of developing or providing non-consumable parts for the product or system.

For example, the purchase of a photocopier is the CAPEX, and the annual paper, toner, power and maintenance cost is the OPEX.

this is the money the business spends in order to turn inventory into throughput.

On an income statement, "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year.


Operating expenses include :
1.accounting expenses
2.license fees
3.maintenance and repairs
4.advertising
5.supplies
6.attorney fees and legal fees
7.utilities, such as telephone
8insurance
9.property taxes
10.travel and vehicle expenses
11.salary and wages
12.raw materials

Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year.

Capex are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. Capex is commonly found on the Cash Flow Statement as "Investment in Plant Property and Equipment" or something similar in the Investing subsection.

Included in capital expenditures are amounts spent on:
1.acquiring fixed assets
2.fixing problems with an asset that existed prior to acquisition
3.preparing an asset to be used in business
4.legal costs of establishing or maintaining one's right of ownership in a piece of property
5.restoring property or adapting it to a new or different use
6.starting a new business