IPO by good companies with strong fundamentals and growth outlook can give comparatively higher returns than FPO. By investing in an IPO, investors can invest at an early growth stage of the company.
As FPOs are announced by listed companies which are in stabilization phase hence, comparatively less profitable than IPO. Investing in FPO is less risky than IPO because investors will have access to all information such as companies past performance, valuation, and so on.