Grading of Initial Public Offerings (IPOs) is a service aimed at facilitating assessment of equity issues offered to the public. The Grade assigned to any individual IPO is a symbolic representation of rating agency’s assessment of “fundamentals” of the issuer concerned relative to other listed securities.
IPO Grades are assigned on a five-point point scale, where […]

An investor in a hitherto unlisted company may either have limited access to information on it, or may find it challenging to appropriately assess, on the basis of the information available, its business prospects and risks. An IPO Grade provides an additional input to investors, in arriving at an investment decision based on independent and […]

The emphasis of the IPO Grading exercise is on evaluating the prospects of the industry in which the company operates , its competitive strengths that would allow it to address the risks inherent in the business(es) and effectively capitalise on the opportunities available as well as the company’s financial position.
In case the IPO proceeds are […]

The assigned grade would be a one time assessment done at the time of the IPO and meant to aid investors who are interested in investing in the IPO.
While the grading itself is valid for a period of 6 months from the date of issuance, the grading letter will have a validity of 2 months […]

SEBI Chairman M. Damodaran explains the rational behind rating though many content that equity is by definition risk capital.
An entrepreneur comes to the market with the idea of realising his dream and he wants support (funds) from investors at a low cost. Will grading affect a genuine entrepreneur and prevent him from entering the market […]