Today people have become aware about the benefits of investment and have started looking for different investment avenues like equity, mutual funds, debt instruments, real estate properties etc. Investment in debt or a real estate property provides the regular passive income which equity investment does not provide. But investing in real estate properties requires huge amount of capital which is so easy for every investor to invest in. But today it is possible to invest in real estate with less than Rs. 400.  

You can invest in real estate through Real Estate Investment Trust (REIT). For an individual retail investor, it is exceedingly difficult to buy a property, give to on rent, and earn regular rental income. But REIT has made it possible for a retail investor to earn from real estate property without having to buy it. REIT managers buy the property from the investors’ money and then give it on rent and earn regular rental income and then pass on that income to investors.  

  

How does REIT work? 

REIT is a trust that works like a mutual fund. Mutual fund company/ manager collects money from many small and retail investors, and then invests the total collected money in different companies. Similarly, REIT is a company or a trust that collects money from many retail investors and invests the total collected money in different real estate commercial properties to earn regular income. Then the net total collected rental income is distributed among all the investors in proportion to their investment in the fund. It enables the retail investors to earn from real estate property without having to buy it. 

As per the SEBI guidelines, REIT managers must invest minimum 80% of the total fund in readymade i.e., ready to use commercial property compulsorily and rest 20% can be invested in under-construction properties or in shares of other companies and they must distribute minimum 90% of the net total rental income among the investors compulsorily. REITs are regulated by SEBI (Securities and Exchange Board of India) and are traded on exchange, so any investor can sell his investment anytime at the exchange similarly as we do sell our investment in equity on exchange.  

How mutual fund is different from REIT? 

Mutual fund company invests their funds in different assets classes like equity, debt, gold, commodity, real estate etc. while REITs invest their funds only in real estate properties, more specifically in income generating commercial properties.  

  

Benefits of Investing in REIT 

1. Low-cost ownership - An individual investor can start investing in REIT at a very low amount, currently with less than Rs. 400. 

2. Regular Income - From investment in REIT, an investor can expect a return of around 10-11% CAGR. Besides there is a capital appreciation in the value of property which is reflected through the unit price of REIT fund just like NAV in the case of mutual fund.  

3. Diversification - Through REIT an investor from any state or a city can invest in properties of any state or city. For example, an investor living in Delhi can invest in the property of Mumbai, Bengaluru, Kolkata, Jaipur etc. 

4. Hassle-Free - When we buy a property a lot of hassle goes on like we need to do paperwork, do registry of the property, find a tenant for the property, pay property tax etc. But when we invest through REIT all these matters are taken care of by the REIT company or a trust and an individual investor does not need to get involved in these matters. 

5. Liquidity - One of the biggest disadvantages of buying a property of investment is liquidity. We cannot easily sell our property at our wish price in the market, in fact we do not even know how much time it will take for the property to get sold, it can take up to years to get sold. But REIT has resolved this problem and provided liquidity to the investors. REIT funds are traded over the exchange and an individual investor can easily sell their investment in REIT fund through exchange as and when they wish to.  

6. Safety - REIT fund or REIT company are not any kind of cheat fund companies, they are well regulated and registered under the SEBI, therefore the investor money is safe with the REIT companies.  

Types of REIT  

1. Equity REIT - This is the most popular type of REIT. They invest in the operating and income generating real estate properties. Rent is their main source of income.  

2. Mortgage REIT - They are involved with lending money for income generating real estate purchased by mortgage and mortgage-backed securities. Mortgage REITs generate income from the interest accrued on this investment.  

3. Hybrid REIT - Allow investors to diversify their investment in both Equity REIT and Mortgage REIT. Therefore, investors can earn rent and interest from this type of REIT.  

4. Private REIT - It works as a private placement; investors are institutional investors. Private REITs are not traded on exchange and are not registered with the SEBI.  

5. Publicly traded REIT - These REITs are listed on exchange to let the individual investors buy and sell units/ shares of these trusts. Publicly traded REIT are registered on SEBI.  

6. Public non-trade REITs - These REITs are registered with SEBI, but they are not listed on the exchange. Also, when compared with other REITs, these REITs are less liquid. They tend to be stable because they are influenced by market fluctuations.  

  

How to Invest in REITs?

An individual Investor can invest in REITs through their brokers. Just like we invest in shares of the companies, similarly we can invest in REIT through three ways: 

1. Stock Exchange – Just like we buy shares of any company from exchange through our demat account, we can buy shares of REIT from exchange through our demat account. 

2. Mutual Fund – there are some Mutual fund who invest in real estate property or REIT as a part of their portfolio, so we can invest in those mutual funds 

3. Initial Public offering – REIT also goes for public offerings and we as a retail investor can apply for the allotment through our demat account same way as we do for IPO of any company. 

 

A Startup is the largest group of people you can convince of a plan to build a different future. A new company's most important strength is new thinking, even more important than nimbleness, small size affords space to think. A lone genius might create a classic work of art or literature, but he could never create an entire industry. Startup operates on the principle that you need to work with other people to get stuff done, but you also need to stay small enough so that you actually can.

Every Startup is small at the start. Every monopoly dominates a large share of its market, therefore every startup should start with a very small market. Starting with a small market can help in creating monopoly and dominate the market. Monopoly here doesn't necessarily mean to be the only player, but also to be the strong enough that it will not be easy for others to affect the market or your working. Like during demonetisation in INDIA in 2016, Paytm (online payment platform) was major player for online payment.

How a Startup can create a monopoly in a market?

 It is usually difficult for a startup to create a monopoly, every monopoly is unique, but they usually share some combinations of the following characteristics: proprietary technology, network effects, economies of scale and branding. So every startup should try to create a unique combination of these characteristics to create a monopoly in market. 

1. Proprietary Technology

Proprietary technology is the most authentic advantage a company can have because it makes the product difficult or impossible to be cloned. A proprietary technology must be 10 times better than its closest substitute available to lead a real monopolistic advantage. The clearest way to make a 10 times improvement is to invent something completely new, once you're 10 times better you escape competition.

2. Network Effects 

Network Effects make a product more useful as more people use it. It can be powerful, but you'll never realize them unless your product is valuable to its first users, when the network is necessarily small. Network Effect business must start with small market.

3. Economies Of Scale

A monopoly business gets stronger as it get bigger. The fixed cost of creating a product can be spread over the large quantities of sales, & variable cost varies directly with the quantity of production. A good startup should have the potential for great scale built-in its first design.

4. Branding

A company has a monopoly on its own brand by definition, so creating a strong brand is a powerful way to claim a monopoly. But no company can be built on branding alone. Its products must be 10 times better than its competition. For example, when Steve Jobs returned to apple in 1997, he focused on making all the apple products 10 times better than its competitors, and he was successful in doing so and re-established apple as a luxurious brand.

SOME USEFUL TIPS

1. Find Secrets

Every one of today's most famous and familiar ideas were once unknown and unexpected. Today, most people think as if there are no secrets left to be found. But those people who don't think so have proved this wrong and found secrets. 
For example, a person found a secret of how to connect people on internet and found Facebook, a person found a secret of how to make conveyance easy and found Uber, a person found a secret of how to transfer money without going to bank and found PayPal and there are many such stories of founding different secrets but what is common is they broke the convention thinking that there are no secrets left to be found. So to be a start-up founder you must search for a secret which no one is looking for.

2. Foundations

Beginnings are special. Bad decisions made in the beginning days, for example choosing wrong partner or hiring wrong persons, are very hard to correct after they are made, as a founder the first job is to get the first things right because you cannot build a great company on a flawed foundation.

When you start something the first and most crucial decision you make is whom to start with, choosing a co-founder is a critical task. Founders should share a pre history before they start a company together, otherwise they're just rolling dice.
But it's not just about founders who need to get along, everyone in your company needs to work well together.

3. Sales and Advertisements

Even though sales is everywhere, most people underrate its importance. People like engineers, developers, innovators are biased towards building cool stuffs rather than selling it. 
But customers will not buy because you build it, you have to persuade them to buy, and it's harder than it looks. That's why advertisements matters because it works. 
People may think that they are exceptions; their preferences are authentic and advertisements works on other people, It's easy to resist the sales pitches. But advertisements doesn't exist to make people buy a product right away. It exists to embed a subtle impression that will drive sales later.
The engineers' aim is a product great enough that "it sells itself". But people buy product because of sales pitches and offers made to them. It's better to think of distribution as something essential to the design of a product. If you've created a great product and haven't found an effective way to sell it, then you're doing a bad business.

 WHAT IS A START-UP?

A Startup is a company that is started by a person or a group of persons for providing new and unique products and services. And those people are called Entrepreneurs. But not every business is considered as startup there are some criteria that must be fulfilled to call your business a Startup.

DOES STARTING ANY BUSINESS IS CALLED STARTUP?

No, not every business is called a Startup. There are some conditions which must be fulfilled in order to call your business a Startup, and they are:

• Its idea must be unique and innovative and should aim to solve a problem or provide a unique product or services in the market or improve the existing product and services

•  It must be registered as a private limited company or limited liability partnership or partnership firm in INDIA.

• It must have a high potential for employment generation and wealth creation.

• Business entity must not have been formed by splitting up of already existing business.

• Time of the existence of business must not have exceeded 10 years and turnover should be less than Rs.100 crore.

Now a question must have struck in your mind that whether a startup is called a startup for whole life or when it becomes a company? The answer is simple, a start-up becomes a company when it has completed its 10 years of incorporation or when its turnover crosses INR 100 crores.

PROBLEMS FACED BY STARTUPS

Starting a startup is not an easy task. During the initial days, the startup has to face many problems and one has to take care of a lot of things.

1. Government laws  

There are many government rules and regulation which must be taken into consideration before starting a startup. Failing to comply with any law can have legal problems for the startup and can even shut it down. Also, by taking care of government laws, one can take advantage of various government schemes and subsidies which are designed specially for startups.

2. Extreme competition

There is always competition going on in the market and everyone tries to win it. In this severe competition survival and growth of a startup is extremely critical. In order to survive in this competitive business environment, the startup needs to serve well and stand out among others to get recognition.

3.  Hiring a suitable team

The chances of the success of a startup go up when it is managed by a team rather than managed by a solo founder. You need a team with complementary skills. There is a huge number of aspiring candidates available who are willing to work but selecting the suitable one that fits the job well enough is a ticklish task.

4. Funding

The main problem that startups face is funding. Funding is very crucial for any business. In the initial day's funds are provided by entrepreneurs themselves or by their family and friends. But for running it for long time proper funding is needed which can be arranged from banks as loans, private finance firms, funds can be raised from angel investors or venture capitalists by convincing them about the idea and its growth potential but  convincing them is not an easy nut to crack.

Some tips that are useful for Startups

1. Start Small & Monopolize

Every Startup is small at the start. Every monopoly dominates a large share of its market, therefore every startup should start with a very small market. The large market will either lack a good starting point or will be open to competition which means profits will be cutthroat almost zero.

2. Scaling Up

Once you create and dominate a niche market, then you should gradually scale up into a related and slightly broader market. Exploring adjacent market will help in growth of startup. Sequencing a market correctly for exploration is complex, and it takes discipline to expand gradually - first dominate a specific niche market & then scale to an adjacent market.

3. Don't Disrupt

Avoid competition as much as possible if your company can be summed up by its opposition to already existing firms it can't be completely new and its probably not going to become a monopoly. It is advised that incumbent companies should not start with improvement of already existing products/ services but try to create a new one.

There are basically two ways from which you can buy shares you can either apply for them from the Primary Market or you can buy them from the Secondary Market also called the Stock Market. In the primary market, the companies sell their shares for the first time to the public whereas in secondary market shares are bought and sold many times between buyers and sellers.

What is IPO?

Before learning how to apply and earn from IPO we have to understand what is IPO.
IPO means Initial Public Offering when the company issues shares for the first time it is called IPO. Before issuing shares to the public the company is called a Private Company and they use PVT. LTD. after their name which indicates that company is Private Company but after issuing shares to the public the company becomes Public Company so they use PUBLIC LTD. after their name but the use of the PUBLIC word is not necessary so companies use only LTD. word after their name which indicates that company is a Public Company.

Reasons for IPO

Why a private company became a public company? why they need huge funds? The answer is, there are so many reasons for which company needs funds such as for expansion of business, diversification of business, repay old debts, investing in new projects, investing more funds in an existing project, releasing early investors or promoters who invested early in the formation of the company, increase public visibility and making brand name popular.

when a company requires funds then it can arrange it from many resources like from retained earnings, borrow from banks, a borrow from finance institutions, private arrangement, filing for  IPO, etc..but What makes the company go for IPO?

If a company takes loan from bank or private financers they have to pay interest on loan and repay the principal amount as well and also some collateral has to be given but in issuing shares company don't have to pay interest and repay the principal amount and no collateral is also not required but they lose some share in the company which is not in case of loan. A company who desires to go IPO must appoint a merchant banker, who will assist the company with the process of IPO.

Investors point of view

 But if we look from the side of investors IPO is a very good opportunity for short gains. In the IPO shares are issued at a lower price and are listed at a usually higher price but it depends on market conditions also and quality of IPO means reasons for which funds are being raised, growth potential, etc..

IPOs are easy to invest for retail investors as it involves amount not more than 15k (it may seem high for some investors) and gains are quite high.

How to apply for an IPO?

You can apply for IPO through Net Banking or UPI ID for both you should have Demat account.

For applying through Net Banking through ASBA(Application Supported by Blocked Amount)

● Login to your Net Banking Account.

● Go to ASBA options and click on IPO/ Apply IPO.

● Select the IPO to be applied.

● Enter your depositary details and bid for the IPO.

● Agree to the terms and conditions by clicking the tick button.

● Click on Apply now button.

For applying through UPI ID you have to approach your stockbroker with whom you have your Demat Account, he will provide you with application form, you have to fill in all the details like no. of shares applying for, bidding price, UPI ID, depository details.etc.. then your broker will bid on your behalf, if you get allotment then allotted shares will be credited to your Demat account which you can sell after listing in any of the stock exchange.

How to select a good IPO?

Not all IPOs are worth investing for retail investors so you should be careful about applying. below are some tips you can consider before investing:-

● Consider expert advice available online if all experts are saying to apply for IPO then one should go for it.

● Consider the Red Herring prospectus of the company which contains details about company background, future plans, financial statements, how they will utilize the amount raised by IPO.

● Should consider the various ratios like Earning Per Share (EPS), Price Earning ratio(P/E), Price     Book ratio(P/B), Return on Net Worth ratio(RONW), etc..

● Retail investors should bid at the cut off the price by this way you can increase your chances of getting an allotment of shares whatever may be final allotment price.

● MOST IMPORTANT- Always wait and apply on the third day 2'o clock for an IPO as the subscription figure for the first two days will be available till 1 p.m.. if IPO is over-subscribed it is an indicator of goos IPO.

Suppose you are an investor and want to invest some money but don't have enough to invest in more than one place, for example, you have only ₹500 so with this you can buy shares of any one company only (whose share value is less than ₹500) but if in future there is a fall in share value of company than unfortunately, you have to face  loss. 

But what if you can invest those ₹500 in the different company of different sector like food, technology, clothes, etc.. Well that's what a mutual fund does for you. Mutual fund manager/company collects money from many retail or small investors and invest total collected money in different sectors so that if anyone sector face loss it could be cover from another sector in profit and save the investor from a loss. In fact, a mutual fund is itself a type of investment because it is professionally managed investment fund made up of a pool of money collected from retail investors to invest total collected money in buying securities such as bonds, equities, money market instrument and other assets.

Each investor owns units or shares, which represent a portion of the holdings of funds. The income generated from this investment is distributed among the investors in proportion to their holdings of funds after deducting certain charges and expenses.

Investing in a mutual fund is the easiest way to grow your wealth. This is why the Fund manager's expertise is an important factor to consider. The success of a mutual fund largely depends on the ability of fund manager in making decisions regarding where to invest and when to start or close the trade, etc.. All mutual funds are registered with Securities Exchange Board of India (SEBI) and therefore, is quite safe.

The mutual fund has advantages and disadvantages compared to direct investing in individual securities.

ADVANTAGES

1. Diversification- The reduced risk is achieved through the use of diversification, as most mutual funds will invest in anywhere from 50 to 200 different securities. In a mutual fund, diversification helps to cover loss by one sector with gains from another sector.

2. Low cost- Mutual funds are bought and sold in large amount (in terms of securities) so their cost of the transaction is very low as compared to other individual security transactions.

3. Low investment needed- Any person can start investing in a mutual fund with a very low amount that is with ₹500 which is very difficult to start with individual securities.

4. Professional portfolio management- The biggest advantage of a mutual fund is that your funds are managed by professionals who are experts in this field and it is helpful for those don't have time and knowledge of managing funds and in return, you have to pay fees to them which is very low.

5. Safety- Mutual funds are regulated by the government body that is Securities Exchange Board of India (SEBI).

DISADVANTAGES

1. Less control- You will have less control over your funds and cannot take actions if/whenever you recognize the gain opportunity.

2. Unknown income- You cannot predict in advance what will be your income from investing in a mutual fund. only an idea or estimation about income can be made.

3. Fees - You have to pay fees to your fund manager which most of the time is fixed. If profits are low then paying fees to fund manager may sometimes make the investor feel not reinvest in a mutual fund.

4. Taxes- When selling of securities takes place that is when a fund manager sells securities and capital gain is incurred then the tax liability arises which has to paid to the government. However, there are much tax exempted or tax saving schemes/ options are also available.

TYPES OF MUTUAL FUND

There are mainly three types of mutual funds:- Open-end fund, Unit investment trust, Closed-end fund. Exchange-traded funds (ETFs) are open-end fund or unit investment trust that are traded on exchanges. a mutual fund is classified in different categories according to their investment and risk involved like

1. Diversified Fund- This fund invests in companies spread across sectors. If one sector does not do well than another sector would save the fund.
2. Index fund- This fund clone the portfolio of a particular benchmark index like Sensex. The valuer of the fund varies in proportion to the benchmark index. 
3. Tax Saver Fund- It offers tax benefits to investors under the Income Tax Act.
4. Sector Fund- This fund invests mainly in equity shares of companies in a particular business industry.
5. Debt Fund- This fund invests in money instruments like bonds, debentures, government securities and commercial papers. The fund aims to provide a regular income to the investor. It is also called Income Fund.
6. Equity Fund- This fund invests a major part in equity shares. Since the return are directly linked to the performance of the stock market, it carries a comparatively higher risk.
7. Hedge Fund- It is a high risk fund that follows highly speculative trading strategies.
8. Gilt Fund- This fund invests in bonds and securities issued by state or central government to ensure safety of principal amount and returns.
9. Balanced Fund- This fund invests in both equity shares and fixed- income bearing instruments in some proportion. The idea is to provide the safety and steadiness of the debt market while capitalising on the high returns earned from the equity markets.
10. Liquid Fund- It is also called Money Market Fund. it aims at providing easy liquidity, safety of capital, and decent returns. This fund invests in highly liquid short term instruments like treasury bills and commercial papers. 

HOW MUTUAL FUND WORKS

A mutual fund is an investment and a company also. Just like an investor invests in shares of company eg. Infosys Ltd. he is buying a part of the ownership of a company, similarly, a mutual fund investor buys part ownership of the company and its assets. The difference is that Infosys is an IT company and mutual fund company is engaged in the business of investment. 

        The fund manager is hired by the board of directors and is legally bound to work in the best interest of an investor. Most fund managers are also the owners of funds. The fund manager may employ some analyst to perform market research and help to pick the best investment options. It needs to have a lawyer and compliance officer to keep up with government regulations.

EARNINGS FROM MUTUAL FUND

1. Income is earned from interest on bonds and dividend on stock or equities. Fund manager distributes income from funds to investors at the end of the year.

2. If a fund manager sells securities at a higher price then the capital gain is incurred. Fund manager distributes these capital gains to fund owner/ investors. However, these gains can also be reinvested.

3. If the price of fund holdings increases but the funds have not been sold by the fund manager, you can sell your mutual fund shares for a profit.

STATUE OF UNITY is the statue of Indian politician also known as the first founding father and first deputy prime minister of India Sardar Vallabhbhai Patel.

Statue Of Unity

Its height is 182M (including the base of 25M of the statue) which is the twice the size of the STATUE OF LIBERTY, making it world's tallest statue by beating the previous tallest statue of 153M of SPRING TEMPLE OF BUDDHA (CHINA).

The statue is built in the city of Vadodara, Gujarat. It is sculpted by famous Indian Sculptor Mr. Ram Vanji Sutar, a 93-year-old Indian sculpture who also sculpted many statues around the world ( Russia, Italy, France, England, Malaysia).

Ram Vanji Sutar

 It was announced for the first time on 7 October 2010 by Narendra Modi as chief minister of Gujarat. A special purpose vehicle named the Sardar Vallabhbhai Patel Rashtriya Ekta Trust(SVPRET) was constituted by the Government of Gujarat for executing the project. old used iron, scrap iron was also used to build it rather than using all new one. An overstep drive named the STATUE OF UNITY MOVEMENT was started to support the construction of the statue. It was started to collect the iron needed for the construction of the statue by asking the farmers to donate their used farming instruments. Total 135 metric tonnes of scrap iron had been collected and 1.9 tonnes of it was used to make the foundation of the statue after processing. A marathon RUN FOR UNITY was also held on 15 December 2013 in Surat, Gujarat to support the project. A whopping amount of ₹3000 cr. was spend to build the statue by the government of Gujarat. The statue was built by public partnership model with most of the money being raised by the government of Gujarat. The government of Gujarat allotted ₹600 crore for the project in the budget from 2012 to 2015. in the 2014-15 union budget ₹200 crore was allotted for the construction of the statue, funds were also contributed by public sector units (PSUs) under corporate social responsibility scheme. It took a short span of 42 months to build this statue. There were around 2500 workers working every day on site. The total amount of raw material used to build the statue:-
1. Reinforcement steel- 18000 metric tonnes
2. Bronze plates- 22000 square meters
3. Concrete- 200000 cubic meters
4. Structural steel- 6000 metric tonnes
5. Cement- 70000 metric tonnes

An average of 3000 visitors are expected to visit the statue every day and 800 cars can be easily parked at the venue. A viewing gallery has been built inside the statue at a height of 135M, which can accommodate around 200 people. There are 2 lifts at the bottom which takes the visitors to the viewpoint. The statue can survive an earthquake measuring up to 6.5 on the Richter scale.

You would be wondering why nowadays Dollar is becoming stronger against Indian Rupee day by day, to know this reason we have to go in deep, so let us start from the beginning.

   Till the 17th century, INDIA was ruled by kings who were very rich and have a huge amount of gold and precious items with them so INDIA was a very rich country at that time and was known as GOLDEN BIRD.

In the early 17th century Britishers came to India for trading and on 31st December 1600, EAST INDIA COMPANY was founded. But soon they started ruling in INDIA and damaged the Indian economy heavily.

On 15th August 1947, INDIA got independent. At that time 1INR₹ = 1 USD💲. The Indian economy was very weak and in poor condition, but the British economy was very strong so they keep on developing but it took time for INDIA to recover all the losses, that's how Indian Rupee fall and became equal to US Dollar.

SO HOW DOLLAR BECAME STRONGER?

It's like a race in which INDIAN RUPEE AND DOLLAR has started from the same point means the same value that is 1 INR₹ = 1 USD💲(in the year 1947), now in this race dollar has gone up faster than rupee so DOLLAR has become stronger against the INDIAN RUPEE so much that 1 USD💲= 73.6105 INR₹ (as on 29 Oct 2018).

WHY DOLLAR BECOMING STRONGER AGAINST INDIAN RUPEE DAY-BY-DAY?

There could be many reasons like when domestically produced goods cost more than imported goods than our import of such goods increases which requires dollar for payment of purchases, similarly when we like international goods or goods of other countries our import increases which make our currency weak against other as we demanding other currency more than the rupee, similarly some of the main reasons are:  

1. Rising crude oil prices are putting pressure on the rupee as India imports more than 80% of its crude oil requirement. Tight supply and geopolitical concerns, global crude oil prices have made a gap of the $80 dollar mark. In the past 12 months alone, crude oil prices are up 50 percent, supported by supply cuts from major oil-producing countries.

2. Though petrol and diesel prices in the country are market-determined, the government still provides a subsidy for kerosene and cooking gas. According to estimates of global financial services major Nomura( a Japanese financial holding company), every $10 per barrel rise in the price will impact India's fiscal balance by 0.1 percent and current account balance by 0.4 percent of GDP.

3. Every $10 per barrel hike in crude oil price could also increase domestic retail inflation by 0.6-0.7 percentage points, Nomura estimates.

4. Some analysts have said that the RBI may adopt hawkish commentary, highlighting upside risks to inflation.

5. Global funds, according to Bloomberg estimates, have pulled $3.5 billion from Indian bonds so far this year. India needs robust dollar inflows to help bridge its widening current account deficit and support the rupee, say, analysts.


6. The dollar's broad surge against other major currencies has also hurt the rupee. The yield on the most widely watched bond rate in the world - US 10-year Treasury notes - hit the 3 percent threshold on expectations of faster Federal Reserve rate hikes and optimism about US economic growth. Higher US rates tend to boost the dollar.

7. Meanwhile, domestic petrol and diesel rates have been hitting new highs amid weakness in the rupee.

8. This has led to pressure on the government for cutting excise duty to bring down the fuel prices. But cutting taxes could stretch government finances.

FPO (Follow-on Public Offer) is a process by which a public company, which is already listed on a stock exchange, issues new shares to the investors or the existing shareholders. FPO is used by companies with a view of diversifying their equity base.
A company uses FPO after it has gone through the process of an IPO(Initial Public Offering) and decides to make more of its shares available to the public or to raise capital to expand or pay off debt.

 An FPO is a stock issue of additional shares made by a company that is already publicly listed and has gone through the IPO process. FPOs are popular methods for companies to raise additional equity capital in capital markets through an issue of stock.

Public companies can also take advantage of an FPO through an offer document(prospectus). FPOs should not be confused with IPOs,  Initial Public Offering of equity to the public.  FPOs are additional issues made after a company is listed on an exchange. IPOs are the very first issue made by the company to the general public.

Types of FPOs

There are mainly two types of follow-on public offers. The first is DILUTIVE to investors, as the company’s Board of Directors agrees to increase the number of shares available. This kind of follow-on public offering seeks to raise money to get additional capital or reduce debt or expand the business. Results in an increase in the number of shares owned by stockholders, investors, etc..

The other type of follow-on public offer is NON- DILUTIVE. This is useful when directors or valuable shareholders sell-off privately held shares. With a non-dilutive offer, all shares sold are already in existence. Commonly referred to as a secondary market offering, there is no benefit to the company or current shareholders.

Problems that can be faced with Follow-On Offerings

Follow-on offerings are common in the investment world. They provide an easy way for companies to raise equity that can be used for common purposes. Companies announcing secondary offerings may see their share price fall as a result. Existing shareholders often react negatively to secondary offerings because they dilute existing shares and many are introduced below market prices.

In 2015, many companies had follow-on offerings after going public less than a year prior. Shake Shack was one company that saw shares fall after news of a secondary offering. Shares fell 16% on news of a substantial secondary offering that came in below the existing share price.

Key Differences Between IPO and FPO

1. Initial Public Offering is a process through which privately-owned companies can go public by offering their shares for sale to the general public. where else Follow-On Public Offering refers to a process in which publicly owned companies make a further issue of shares to the public through the prospectus.
2. IPO is the very first issue of the shares by the private company. On the other hand, FPO is the second or third public issue of the shares of the company.
3. IPO is the offering of shares by an unlisted company. However, when a listed company makes the offering it is known as Follow-on Public Offering.
4. IPO is made with the aim of raising capital through public investment. Unlike FPO, made with an objective of following public investment.

An IPO or, initial public offering, is the very first sale of stock issued by a company itself to the public. Prior to the issuance of an IPO the company is considered to be private, with a small number of stakeholders made up of early investors who started that company (such as the founders, promoters, angel investors, etc.) they are not required to disclose financial and accounting information in public.

The public, on the other hand, consists of everybody else – any individual or institutional investor/ private placement, offer for sale through issuing houses or stockbroker who was not involved in the initial days of the company and who is interested in buying shares of the company. Until a company’s stock is offered for sale to the public, the public is unable to invest in it. If you wish to invest in any private company you can potentially approach the owners of a private company about investing, but they can't be forced to sell you anything. Public companies, on the other hand, have sold at least a portion of their shares to the public to be traded on any stock exchange. This is why an IPO is also referred to as "GOING PUBLIC."

A private company has some benefits which they get loose once they go for the public. For example, as said its owners do not have to disclose much financial or accounting information about the company, don't have to share profits with shareholders. 

Public companies have many shareholders and are bind to stick to rules and regulations. They must form a group as the board of directors and they must report financial and accounting information every quarter. In INDIA, public companies report to the Securities and Exchange Board of India(SEBI). In other countries, public companies are overseen by governing bodies similar to the SEBI. In addition, public companies must stick to regulations and requirements set by the stock exchanges where their shares are listed. Being on a major stock exchange carries a great amount of prestige. 

Why Have an IPO?

Why go public, then? Going public raises a great amount of money for the company in order to grow and expand. Private companies have many options to raise capital – such as borrowing, finding additional private investors, or by being acquired by another company. But, the IPO option raises the largest sums of money for the company and its early investors without creating any burden on the company.

Being publicly traded also opens many financial doors: Because of the increased observation of analysts and investors, public companies can usually enjoy lower interest rates when they issue debt.

For investors, trading in open markets means liquidity. If you are a shareholder of a private company, it is very difficult to sell your shares, and even more difficult to value your shares, because investors prefer to invest more in public company. A public company trades on a stock market, with ready buyers and sellers and known price and transaction data. The stock market is therefore referred to as the secondary market since investors are buying and selling stock from other public investors and not from the company itself. Public markets and liquidity also makes it possible for a company to implement benefits like employee stock ownership plans (ESOPs), which help to attract top talent. Now let us know about some pros and cons of IPO:

Pros and Cons of an IPO

Pros:

1. A large number of investors to raise capital.
2.  The company gets capital at a lower cost.
3.  Increase the company’s prestige, and public image, which can help the company’s sales and profits.
4.  Public companies can attract and retain better management and skilled employees through liquid equity participation (e.g. ESOPs).
5.  Raises the largest amount of money for the company compared to other options available.

Cons:

• 1. The companies are required to disclose financial, accounting, tax, and other business information in public.
• 2. Significant legal, accounting, and marketing costs, many of which are ongoing increased time, effort and        attention required of management for reporting
• 3. The risk that required funding will not be raised if the market does not accept the IPO price, and sending the stock       price lower right after the offering
• 4. Loss of control and stronger control problems due to new shareholders, who obtain voting rights and can effectively control company decisions via the board of directors.
• 5. Increased risk of legal or regulatory issues, such as private securities class action lawsuits and           shareholder actions 

CAN A COMPANY OFFER IPO MORE THAN ONCE?

Yes, it can but this time it is not called IPO it is called as FPO(Follow-on Public Offer)