IPO pricing

Valuation is a process by which the value of a company's stock is determined. This is based on a number of factors like earnings and the market value of the company's assets.

Jagran Prakashan was priced at between 45 times and 54 times the annualised earnings for the six-month period ended September 2005.

Royal Orchid’s price band of Rs 150-165 valued the stock at 21-24 times its likely Financial Year 2006 per share earnings on an expanded equity base.