IPO Valuation — defensible, investor-grade, SEBI-aligned

IPO valuation is a negotiation of evidence between the issuer, the merchant banker, institutional investors and — indirectly — SEBI and the stock exchanges. Transique delivers independent IPO valuations that support the issuer’s view of fair value, stand up to investor-committee scrutiny, and align with the SEBI ICDR framework.

Our IPO valuations are used at three stages: pre-filing (to set internal expectations and anchor the merchant-banker conversation), pre-marketing (to shape price-band analytics) and post-issue (for anchor-book support).

When you need us

You are preparing for a Main-Board IPO or SME IPO and need an issuer-side independent valuation.
You are benchmarking the merchant banker’s valuation range against independent analysis.
You are structuring an anchor-investor round and need a valuation to support the anchor pricing narrative.
You are rationalising issue-size and primary-vs-secondary split.

What we deliver

Independent issuer-side IPO valuation — DCF-based fundamental valuation with market based comparable-companies and comparable-transactions cross-checks.
Sector-specific peer set — listed in India and globally — with appropriate comparability adjustments.
Price-band sensitivity analysis — equity story variables, growth trajectory, margin profile.
Anchor-book pricing rationale document.
Written report compliant with International Valuation Standards.

Our methodology

Scoping. Purpose, audience, timing, platform (Main-Board vs SME).
Business-model and growth-driver analysis. Unit economics, sector trends, risk factors.
DCF build. Three-year explicit forecast and financial modelling; terminal-value triangulation.
Relative-value cross-check. Listed peer set with size, growth and margin adjustments.
Sensitivity and scenario analysis. Investor-Q&A-anticipating stress tests.
Report issuance. IBBI-Registered Valuer signature; supporting exhibits and peer-set documentation.

Technical grounding

Peer-comparable adjustments for size premium / discount and accounting-basis differences.
Transparent build-up of the cost of equity using India-specific risk premia.
Use of forward multiples where trailing multiples distort the comparison (e.g., cyclical sectors).

Frequently asked questions

Does the merchant banker not do the IPO valuation?

The merchant banker typically prepares the valuation and the research analyst’s pricing view. Issuers increasingly commission an independent valuation to benchmark, triangulate, and — in sensitive related-party or carve-out contexts — to evidence independence. Our report is separate from and complementary to the merchant banker’s work.

What are the SEBI-prescribed inputs into the IPO price band?

SEBI ICDR does not prescribe any valuation methodology for a book-built IPO, but requires specified disclosures in the DRHP / RHP regarding the basis for the issue price — KPIs, peer comparisons, weighted-average cost of acquisition for pre-IPO issuances, and other comparators. Our report is aligned to those disclosure expectations.

How do you value businesses with limited listed peers in India?

Global peer sets are used with country-risk-premium and size-premium adjustments. Where no close peers exist, inference can still be drawn from larger Industry risk and return characteristics. Further, in such cases, DCF becomes the primary method, with rigorous sensitivity analysis to compensate for the absence of accurate relative-value anchoring.

Talk to us about your IPO valuation

Use the Consult Us form at the top of this page, or book a call. A partner responds within one business day.

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