Real-time updates or frequent updates throughout the day are common for live IPO subscription data.
You must keep tabs on it via stock market applications, financial news websites, or the official websites of stock exchanges.
It shows demand and investor interest, which can help you forecast how the IPO will do in the market.
The key IPO subscriber categories in the stock market are Qualified Institutional Buyers, Retail Individual Investors, and Non-Institutional Investors.
Usually by lottery or proportionally, shares are allocated according to investor type and subscription levels.
It shows whether an IPO was successful or unsuccessful financially, giving investors information about possible returns and helping them make future investment decisions.
You can monitor IPO performance using stock market apps, financial news websites, or research tools in your brokerage account, which offer comprehensive analytics and updates.
These factors include company financial health, investor sentiment, market conditions, and economic trends.
Successful IPOs tend to have strong brand recognition, sound financials, and favourable market conditions, while less successful ones might not
This depends on your investment goals and the performance of the company. While some investors prefer long-term growth, others prefer short-term gains.
Stock market brokers provide critical services such as opening Demat accounts, supporting IPO applications, delivering research papers, and operating trading platforms.
The IPO analysis enables investors to make informed judgments about whether to invest in the IPO or not.
Stock market brokers provide critical services such as opening Demat accounts, supporting IPO applications, delivering research papers, and operating trading platforms.
In terms of an IPO, the minimum investment is determined by the lot size, which is the smallest number of shares one can purchase. This varies for each IPO and is usually mentioned in the prospectus of an IPO.
Current IPO analysis focuses on evaluating companies that are preparing to go public or have previously launched an IPO. New IPO analysis, on the other hand, examines upcoming IPOs and forecasts their prospective performance using market trends, industry prospects, and company fundamentals.
You can check your IPO allotment status online via the registrar’s website (for example, Link Intime or KFin Technologies), the BSE website, or the NSE website.
IPO allotment normally occurs within 24 hours after the subscription period closes. The registrar confirms the assignment and updates the status on their website.
If your application is not approved, the money you paid will be returned to your bank accountwithin a few days. You will receive an email or SMS notification of your reimbursement.
Yes, you can check the allotment status using your PAN number on the registrar’s or BSE/NSE
websites.
If you detect any anomalies in your application details (for example, wrong PAN, Demat, or bank details), contact your broker or the registrar right once to resolve the issue.
Recent IPOs have disclosed a wide range of KPIs (Key Performance Indicators). Companies prefer to report more KPIs relating to financial and non-financial categories to emphasise the strength and longevity of a company’s client base. For investors, it helps evaluate how likely that
IPO will be a success.
With 327 IPOs raising $19.9 billion, India accounted for 26.9% of the global IPO in 2024. As an investor, these KPIs help you understand how good and financially sound a particular company is before going public. Discover current IPO KPIs that investors must analyse to make better decisions.
IPO KPIs are quantifiable measures of a company’s success over time. These key performance indicators (KPIs) are critical for both the company going public and its stakeholders. It allows the company to identify its strengths and work on areas for improvement.
The key benefit of analysing the IPO KPIs is that it helps investors and traders make investing decisions. Various sorts of KPIs offer data on a company’s profitability, efficiency, liquidity, and operational performance. It is critical to understand that no single KPI can determine if a company is performing successfully or not.
Investors who want to make money off the stock market and get the most return on investment on their money must understand how to read and understand KPIs. Here’s how analysing current
IPO KPIs can help you in your investments:
● Understand where a Particular Company Stands Financially: The P/E ratio and promoter holding can tell you a lot about how financially stable a company is pre-IPO.
● Market Potential Valuation: The number of subscribers for a certain IPO and the market sentiment toward it can help you with a brief picture of what to expect and what not to.
● Timing Investment Decisions: Parameters such as grey market premium and listing gains can help you decide the right time to enter the stock market and put your money.
For a beginner, it isn’t easy to understand whether or not they should invest in a company’s IPO
based on KPIs. However, you can also work with a share trading company or professional stockbroking firms to make the most of your hard-earned money.
Earnings per Share (EPS) is the amount of profit that a company makes per share. EPS is calculated by dividing net profit, or profit after taxes, by the total number of outstanding shares. It is a key performance indicator for IPO as it helps the investors and traders base the company on the profits it makes.
The document provided by the company offers the calculation of two EPS, mainly basic EPS and diluted EPS. In the case of diluted EPS, the number of shares increases because convertible securities are converted into shares. Compared to basic EPS, diluted EPS is more cautious.
Why It Matters:
If the EPS increases, the company will become more profitable with time and continue to rise in profitability. However, the company is burning money and is on its way to losses if you see the EPS declining, then that means.
● A high EPS means that profitability per share is better.
● A uniform growth curve means that the company is doing anything it can to create value for shareholders.
Example: Orion AgriTech Limited
Year EPS
Mar-23 4.85
Mar-22 3.20
Mar-21 2.10
Revenue from operations shows the income generated from a company’s core business activities. It excludes non-operational sources of revenue such as investments or one-time gains.
Why It Matters:
If you see a high growth percentage, it means that the customers love the company and are prone to buy more in the future. You should avoid putting money in that IPO if you see a declining growth percentage. It is because the company is facing issues running its operations properly.
● Steady revenue growth indicates strong demand for the company’s products or services.
● Flat or falling revenue may point to market difficulties or loss of competitiveness.
Example: Orion AgriTech Limited
Fiscal Year Revenue from Operations (₹ Cr) Growth (%)
Mar-23 865 43.52%
Mar-22 603 19.48%
Mar-21 505 12.55%
RoE gauges how well a company is generating earnings with shareholders’ equity. It offers details about the business’s capacity to turn a profit on its equity. The measure is usually a favourite among investors to see return potential.
Why It Matters:
An increasing RoE suggests that the company is using its equity right. A falling RoE is often a bad sign that the company is facing huge losses and the shareholders are diluting their shares in the company.
● A higher RoE points to a company making good use of its equity capital.
● An RoE of 15% or more is generally strong.
Example: Orion AgriTech Limited
Fiscal Year RoE (%)
Mar-23 25.12
Mar-22 18.85
Mar-21 10.60
A company’s capacity to turn a profit on its invested capital is shown by the ROCE ratio. RoCE
tells you how well a company has been able to how well a firm has used its capital to manage
debt and equity and stay profitable.
An investor would rather put money into a business that yields a larger return on investment than
one that doesn’t. Operating profit is divided by capital employed, or total assets less current
liabilities, to determine ROCE.
Why It Matters:
If the RoCE increases, you could consider putting money in the company’s IPO, as it is good at
using capital for operations. A decreasing RoCE is not a good indicator and can be due to margin
compression. The company could soon go out of money and start making huge losses.
● Higher RoCE indicates better capital efficiency, a critical determinant of long-term
sustainability.
● Particularly useful for industries having large capital requirements
Example: Orion AgriTech Limited
Fiscal Year RoCE (%)
Mar-23 20.37
Mar-22 14.90
Mar-21 8.75
It shows how much of a company’s financing needs are met by debt and how much by equity. A
company’s capital structure can be determined by looking at its debt-equity ratio. The debt-to
equity ratio indicates the balance between a company’s borrowed funds and shareholders’
equity. It also indicates the financial leverage of a company.
Why It Matters:
A falling ratio shows that the company is improving financially and is running its operations more
smoothly. A rising ratio might signal the risk of increasing debt levels. A high debt-equity ratio is
risky because it shows that the company relies more on debt than equity, which can put pressure on it to meet its debt obligations.
● A lower ratio means less dependence on debt; hence, the company is financially stable.
● A higher ratio could mean increased financial risk, but it often depends on the industry.
Example: Orion AgriTech Limited
Fiscal Year Debt-to-Equity Ratio
Mar-23 1.52
Mar-22 1.65
Mar-21 2.10
The Profit After Tax (PAT) margin is how much money the company is able to bring in as profits
after paying tax. PAT margin is one of the most important profitability indicators. It reflects the
financial health of a company.
PAT is calculated by subtracting tax expenses and all other expenses from total income (i.e.
income from operations plus other income)
Why It Matters:
An increasing PAT Margin indicates that the company is becoming more profitable. A decreasing
PAT Margin shows that the company is suffering to make profits.
● A positive PAT margin indicates better cost control, operational efficiency and that
company is making profits.
● Negative PAT means that the company is making losses.
Example: Orion AgriTech Limited
Fiscal Year PAT Margin (%)
Mar-23 5.05
Mar-22 4.12
Mar-21 2.90
EBITDA margin represents the company’s operational efficiency by measuring earnings before
interest, taxes, depreciation, and amortization as a percentage of revenue. It indicates the
company’s ability to manage expenses at operational levels.
If the company’s EBITDA margin is 15%, it indicates that it has spent Rs. 85 (100-15) on expenses
and made Rs. 15 from operations on sales of Rs. 100.
Why It Matters:
If you see the margin increasing, it means the company is improving its operations and on the
right trajectory to growth. However, if you see the margin declining, it means the company is
under a lot of cost pressures and is inefficient in managing money.
● Higher EBITDA margins mean strong cost management.
● Lower or decreasing EBITDA means caution.
Example: Orion AgriTech Limited
Fiscal Year EBITDA Margin (%)
Mar-23 10.25
Mar-22 8.40
Mar-21 7.00
The P/E ratio is how much the company earns per share. It is a comparison between the current
price of a company’s price and the earnings per share (EPS). The P/E ratio is an accurate KPI for
measuring how the market is valuing the stock or IPO.
Why It Matters:
A lower P/E ratio can signal undervaluation or scepticism in the market. A higher P/E ratio could
mean that investors are confident in the IPO.
● A low P/E probably suggests undervaluation.
● A high P/E may be a good growth pick.
Example: Orion AgriTech Limited
Fiscal Year P/E Ratio
Mar-23 18.25
Mar-22 22.50
Mar-21 35.00
An IPO issuer’s return on net worth (RONW) is a financial ratio that assesses how profitable the
business is in comparison to its net assets, which include reserves and equity. RoNW measures
how effective a company is in generating earnings from the net worth of equity and reserves.
Why It Matters:
A positive RoNW trend can signify the company’s financial health is improving. A negative RoNW
trend is a source of concern for investors.
● Higher RoNW indicates net assets are being used productively.
● It will normally overlap with RoE but has a wider application.
Example: Orion AgriTech Limited
Fiscal Year RoNW(%)
Mar-23 22.85
Mar-22 18.20
Mar-21 12.50
It measures the market price of a company’s stock to its book value. This gives investors an
indication of whether the company is undervalued or overvalued. By dividing the share’s market
price by its net asset value per share, the PB ratio is computed per share.
Why It Matters:
A lower P/B Ratio could mean undervaluation. A higher P/B Ratio shows strong market
confidence or may be considered overvalued.
● A P/B ratio between 1-3 is generally considered fair.
● Industry comparison will provide further context for this number.
Example: Orion AgriTech Limited
Fiscal Year P/B Ratio
Mar-23 3.45
Profit after tax is the net income of the company after deducting all operating expenses, interest,
and taxes. It’s the “bottom line” of a financial statement. An increasing PAT shows strong
profitability with good operational efficiency.
Why It Matters:
If the PAT has been consistent, it means that there’s good but stagnant growth. If the PAT is
declining, then that means there are some problems in cost or revenue control.
● Positive PAT means profitability.
● Consistent or increasing PAT indicates good expense management and revenue
generation.
Example: Mukka Proteins Limited
Fiscal Year PAT (₹ Cr)
Mar-23 47.53
Mar-22 25.82
Mar-21 11.01
To put the above figures into perspective, we have taken the example of the KPIs of Vega
AgroTech. Let us understand what the above KPIs reveal about Vega AgroTech.
KPI Analysis | Mar 24 | Mar 23 | Mar 22 | Observations |
---|---|---|---|---|
Revenue from Operations (Rs. in crore) | 1250 | 850 | 650 | Increasing revenue – A positive sign. |
Growth in Revenue/Sales Growth (%) | 47.06% | 30.77% | 18.18% | Sales growth continues to improve – Indicates robust demand. |
Profit After Tax (Rs. in crore) | 52.10 | 30.45 | 14.78 | Consistently rising PAT – Reflects strong profitability. |
PAT Margin (%) | 4.17% | 3.58% | 2.27% | Improving PAT Margin – A sign of enhanced operational efficiency. |
RoCE (%) | 18.40% | 14.25% | 6.50% | Increasing RoCE – Indicates better returns on capital employed. |
RoE (%) | 35.25% | 28.50% | 19.00% | Consistent RoE improvement and above 15% – A good indicator. |
RoNW (%) | 32.85% | 26.40% | 14.75% | Increasing RoNW – Shows better utilization of net worth. |
Debt-Equity Ratio | 1.58 | 1.65 | 2.25 | Declining ratio – Indicates reduced leverage and financial risk. |
PE Ratio | 16.00 | 22.50 | 55.00 | Improvement in PE ratio – Valuation becoming more reasonable. |
EPS | 2.20 | 1.25 | 0.50 | Rising EPS – Reflects better earnings for shareholders. |
EBITDA Margin (%) | 8.50% | 7.25% | 5.50% | Growing EBITDA margin – Suggests operational efficiency. |
P/B Ratio | 4.50 | Fair valuation relative to book value. |
The analysis of key performance indicators in an IPO is necessary to arrive at a well-informed nvestment decision.
The figures offer specific information regarding the financial condition of the firm, its operational efficiency, and the market value.
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