basics

3. IPO Valuvation
• The IPO valuation is one of the critical steps in
the IPO process that helps determine the
price of an IPO
• IPO valuation is a process to determine an
appropriate valuation of the company to help
determine the correct IPO price.
• Requires expertise and in-depth knowledge of
financial concepts and the market / industry
as a whole

4. Factors
• Demand
• Past Financial Performance
• Peer Comparison
• Potential Growth Rate
• IPO Timing and Market Trend
• Products and Services
• Company management and values

5. IPO Valuation Process
• To derive the valuation of a company, a merchant banker
has to:
• Gather all previous data and details of the company,
including its financials.
• Analyse the data.
• Get the data audited.
• Map the competitive valuations.
• Analyse all factors that affect the valuation.
• Adopt one or more IPO valuation techniques to derive the
valuation.
• Include the information in the draft document.
• Submit the data to SEBI for analysis and approval.