Who actually decides my valuation?
What decides the number, and what you control.
In a book-built issue (where investors bid for shares within a price range), the company and its merchant banker set a price band; investors bid within it, and the company and merchant banker then fix the final price on the basis of the bids. In a fixed-price issue, the price is set in advance.
SEBI and the exchange review the disclosures. They do not decide, approve or guarantee the price.
The company and its merchant banker fix the price, guided by the bids. What investors read before they bid is yours to prepare.
More on Valuation
- How is valuation calculated?
- Why did a similar company get a different valuation from mine?
- What if I believe my company is worth Rs 500 crore and someone says Rs 300 crore?
- How reliable is an early estimate of valuation?
- Why might an outsider value my company lower than I do?
- Why do key numbers matter so much?
All 40 questionsIPO reviewsHow the preparation works
General information, not legal or investment advice. Rules as at 2 November 2026.
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