A follow-on public offer is MADE by an issuer that has already made an IPO in the past and now makes a further issue of SECURITIES to the public. A COMPANY can make a further issue of shares if the aggregate of the PROPOSED issue and all the other issues made in a FINANCIAL year does not exceed 5 times the pre-issue net worth.

When a company wants additional capital for growth or to redo its capital structure by retiring debt, it raises equity capital through a fresh issue of capital in a follow-on public offer.

A follow-on public offer is made by an issuer that has already made an IPO in the past and now makes a further issue of securities to the public. A company can make a further issue of shares if the aggregate of the proposed issue and all the other issues made in a financial year does not exceed 5 times the pre-issue net worth.

When a company wants additional capital for growth or to redo its capital structure by retiring debt, it raises equity capital through a fresh issue of capital in a follow-on public offer.