DRHP LensEvery DRHP has a table that lists each share issue since incorporation: date, number of shares, face value, price and the running total. Read properly, it shows what the company was worth at each funding round and how much more the IPO asks you to pay.
Where to find it
In the Capital Structure chapter, look for "history of the equity share capital of our Company". Nearby you will also find the shareholding pattern, the list of shareholders holding 1% or more, and the weighted average cost of acquisition (WACA) of shares acquired by promoters and selling shareholders.
Three calculations
- Implied company value at a round = issue price × total shares right after that allotment.
- Adjusted price = issue price ÷ the multiplier from later bonus issues and splits. A 1:1 bonus doubles the shares, so divide by 2; a split from ₹10 to ₹1 face value multiplies the shares by 10.
- IPO multiple = IPO price ÷ adjusted last price. Then compare the IPO value (price × shares before the issue) with the implied value at the last round, and work out the yearly growth between the two dates.
Worked example
In a 2022 cash-logistics IPO, rights shares were issued in 2019 at ₹2,938 each when 11.1 lakh shares were outstanding: an implied value of about ₹326 crore. Later bonus issues and a split multiplied each old share into 85 new ones, so the adjusted 2019 price is about ₹34.6. At the IPO's upper band of ₹99 that is 2.9 times the last price, and the company's value before new money (₹99 × 10.1 crore shares, about ₹1,002 crore) implies roughly 19% a year of value growth since 2019.
What to read into it
- Rows at face value are founders' or rights money, not a market price.
- A buy-back price is a useful reference: the company paid that much for its own shares.
- A large jump between the last private round and the IPO deserves an explanation in the business numbers.
- Recent allotments at a low price to a few people, just before the IPO, are worth a question.
- Check the WACA table for what each selling shareholder paid against your IPO price.
Also read: How to value an IPO · Offer for sale vs fresh issue · Promoter pledge in an IPO
Run it on a real offer document
Upload a DRHP or RHP. DRHP Lens reads it in your browser and gives the DRHP Lens score, a ten-method valuation with industry multiples, promoter and KMP background, the shareholding pattern, the last private-deal valuation and a clear closing note, every figure cited to its page.
Analyse a documentFrequently asked questions
How do I find the valuation of a company before its IPO?
Use the share capital history in the DRHP: multiply the price of the latest priced allotment by the total shares outstanding right after it. Adjust the price for any later bonus issues or splits before comparing it with the IPO price.
What is WACA in an IPO?
Weighted average cost of acquisition: the average price at which promoters, selling shareholders and others acquired their shares, disclosed in the offer document so investors can compare it with the IPO price.
Why adjust for bonus shares?
A bonus issue increases the number of shares without new money, so the old per-share price is no longer comparable. Dividing by the bonus multiplier puts the old price on today's share count.
Is a high IPO multiple over the last private round bad?
Not by itself. Businesses grow. It is a prompt to check whether sales and profit have grown enough since that round to justify the higher price.
This guide is general education about how Indian offer documents are structured. It is not investment advice or a recommendation to subscribe to any issue. Regulations change; always read the current offer document and the SEBI regulations it refers to, and consult a SEBI-registered investment adviser before you invest.