FPO set for comeback as fund raising tool with Yes Bank's mega offering

The last successful FPO to hit the domestic market was in 2014 by Engineers India. Apart from that, only three others have successfully launched an FPO

Follow-on public offerings (FPOs), an equity capital raising instrument for listed companies, had gone out of favour. The last successful FPO, by Engineers India, hit the domestic market in 2014. Apart from the state-owned firm, only three others have successfully launched FPOs — the process is strikingly similar to an initial public offering (IPO).

A lengthy approval process and the risk of the issue getting undersubscribed, if the secondary markets see volatility, are some of the reasons why firms have stayed clear of FPOs. The qualified institutional placement (QIP) has been the go-to instrument, given its fast-track nature.

However, the FPO lull