Valuation of a company for IPO

Dear folks,

I have been following many IPOs in SME segment as well as main board segment of exchanges. I just want to understand how the company is valued for the purpose of IPOs. What factors generally merchant bankers takes into consideration while deciding on valuation. ?

This is how its done, with an example,

Adding to that, these posts should help

https://tradingqna.com/t/if-a-new-company-went-for-ipo-as-an-investor-how-can-i-determine-that-i-am-investing-in-a-good-company-since-there-is-no-past-data-available-at-the-exchanges/324

1 Like

Thanks buddy. Have got enough material to study

1 Like