IPO Learning Guide: Volume 15

This is volume 15 of our financial education series on IPONow. To make informed investment decisions, you must understand key financial parameters. When looking at a company's financial records, pay close attention to structural indicators like its PE Ratio, ROE, and EPS. In this article, we explain how understanding these parameters helps you evaluate public offerings and avoid high valuations that lead to post-listing corrections. Read the DRHP carefully to check the objects of the issue, whether the funds will be used for expansion or to clear debt, and pay attention to whether the promoters are divesting their holdings through an Offer for Sale (OFS) or issuing fresh shares.