In the Indian market, ongoing public offerings (FPOs) or secondary public offerings

(IPOs) have become a popular strategy for raising capital and funds from existing
employers, including employees of those companies. FPOs in India are regulated by
the Securities and Exchange Board of India (SEBI) and offer many benefits to both
companies and shareholders. Let's take a look at what FPOs are, how they work in
India, and some examples of companies using this approach to unlock value and
accelerate growth.

Similar to FPOs in other countries, an Indian FPO includes a company that previously
issued additional shares to the public. The main difference is that in India, an FPO can
be established by a company that is currently listed on the stock exchange and meets
the legal requirements set by SEBI.
This allows companies to raise capital by launching new products or selling existing
shareholders' shares to the public, giving them an outlet.

FPOs in India are gaining popularity as they bring many benefits to companies and
business owners. For companies, an FPO can provide a valuable way to raise money
for expansion plans, debt repayments, or other corporate purposes. Also, FPO can
increase the market capacity and trading volume of a company's products, making
them more profitable and profitable for investors. An FPO can provide an opportunity
for business owners, including employees, to learn about investments and an outlet for
those looking to sell their investments.
Let's look at some examples of Indian companies that completed the FPO to unlock
value and accelerate growth:

1. SBI Cards and Payment Services Limited: In 2020, SBI Cards India, a subsidiary of
State Bank of India and the leader in credit cards, will raise capital. An FPO was
created to raise funds and provide an outlet for existing shareholders. The company
announced new shares and received offers of sale (OFS) from existing shareholders,
including SBI and the Carlyle Group. The FPO has raised around INR 100 billion
(about $1.4 billion), making it one of the largest FPOs in India.
FPO allows partial withdrawal of existing members and additional funding for SBI
Cards' growth plans.

2. IRCTC Limited: In 2019, Indian Railway Catering and Tourism Corporation

Limited (IRCTC), a subsidiary of Indian Railways and India's largest e-commerce
website, provided its current members and half of the company with a fundraiser. FPO
did obtain funding from the Government of India to provide new products and OFS.
The FPO raised approximately INR 6.45 billion (approximately US$ 88 million) and
provided an opportunity for existing shareholders, including employees, to realise the
investment.
As a result, the FPO, or secondary public offering, in India is gaining momentum as a
good strategy for companies to raise capital, generate income for shareholders,
including employees, and accelerate growth. Examples of companies like SBI Cards
and IRCTC.