Summary
| PE Ratio* | |
|---|---|
| Highest | 50.00 |
| Median | 38.44 |
| Lowest | 30.31 |
| IPO Size (Cr.) | |
|---|---|
| Highest | 189.50 |
| Median | 19.53 |
| Lowest | 1.50 |
The total amount of funds that a company can raise through its IPO depends on the valuation of the company. For SME IPO in India, valuation is the most important step that decides the IPO Issue Size. IPO valuation determines the share price at which the shares would be issued to the investors. IPO valuation process is done with the expertise of SME Merchant Bankers along with the IPO Advisors. P/E multiple is used to arrive at the valuation which is a combination of factors like past performance, future profit generation and sector outlook. An appropriate and fair valuation is important for a successful IPO and long term market cap appreciation. Company peer comparison in the same sector indicates about the price of the IPO being relatively overpriced or underpriced. It is to be noted that Pre IPO valuation comes at a discount to IPO but Pre IPO funds are critical to fuel a company’s growth.
The below mentioned are the forthcoming SME IPOs for which DRHPs have been filed recently and are in process of approval by the BSE SME or NSE Emerge exchange.
*The Revenue and PAT figures mentioned above are on the Annualised basis.
The Price-to-Earnings (P/E) multiple helps investors evaluate whether an SME IPO is fairly priced by comparing its valuation to industry peers. A high P/E suggests growth potential but may indicate overvaluation, while a low P/E signals affordability or weaker earnings prospects.
The P/E ratio is calculated as:
P/E Ratio = Issue Price ÷ Earnings Per Share (EPS)
It measures how much investors are willing to pay for each rupee of earnings, helping assess IPO attractiveness compared to industry benchmarks and financial performance.
Understand Importance of PE ratio in Detail.
A good P/E ratio depends on industry standards and growth prospects. Generally, a lower P/E (5-15x) suggests affordability, while a higher P/E (20x+) may indicate growth potential but could also signal overvaluation, requiring further analysis.
The Price-to-Earnings (P/E) ratio is a valuation metric showing how much investors are willing to pay per rupee of earnings. It helps compare a company’s market price to its profits, guiding investment decisions in IPOs and stock market investments.
IPO valuation considers financial performance, P/E ratio, industry comparison, revenue growth, debt levels, and market demand. Other factors include management quality, economic conditions, and investor sentiment, influencing whether an IPO is attractively priced for potential investors.
