Online Tool
SME IPO Issue Size Calculator
Get an indicative estimate of your company’s IPO issue size based on sector P/E benchmarks and your profitability. Takes 2 minutes.
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Profit After Tax for the most recently completed financial year
Methodology: Estimated market capitalisation is calculated as PAT × sector P/E (with growth premium for high-CAGR companies). Issue size assumes 20–30% primary dilution. This is a directional estimate only, not a formal valuation.
How the calculator estimates your IPO size
The calculator works in three steps, the same way investors first size up an IPO:
- Valuation multiple: it starts from a typical P/E for your sector, for example 15× for manufacturing and engineering, 12× for textiles and 28× for IT services.
- Growth premium: companies growing faster earn a higher multiple. A 3-year revenue CAGR of 10% or more adds 5% to the P/E, 20% or more adds 15%, and 30% or more adds 25%.
- Issue size: market capitalisation is profit after tax (PAT) × the adjusted P/E. The issue size assumes promoters sell or dilute 20% to 30% of the company in the IPO.
Worked example
A manufacturing company with PAT of ₹5 crore and 22% revenue growth gets a 15× sector P/E plus a 15% growth premium, so about 17.25×. That suggests a market capitalisation of about ₹86 crore.
At 20% to 30% dilution, with a ±10% band on valuation, the indicative issue size is roughly ₹15.5–28.5 crore.
What moves your real IPO valuation
- Consistency of profits over three years, not just the latest year.
- Quality of earnings: low related-party dealings, clean audits and healthy cash flow.
- Valuations of recently listed peers in your sector. The sector-wise IPO list shows recent benchmarks.
- Market sentiment at the time of the issue, and the strength of the anchor book.
Frequently asked questions
1.How is IPO issue size decided?
It depends on the company's valuation and how much of the company is offered. Valuation is usually based on profit after tax multiplied by a P/E in line with listed peers. The issue size is that valuation times the share offered to the public, typically 20% to 30% for an SME IPO.
2.How much can my company raise through an SME IPO?
As a rough guide, take your PAT, multiply it by your sector's P/E for a valuation, and take 20% to 30% of that. A company with ₹5 crore PAT in manufacturing might raise about ₹15–28 crore. The calculator does this for your own numbers.
3.Is the calculator result a valuation?
No. It is a directional estimate based on sector benchmarks. A formal valuation looks at your financials, peers, growth plans and market conditions, and is prepared by your advisors and merchant banker.
4.What P/E do SME IPOs get?
It varies widely by sector and growth. Manufacturing and textile SMEs often price in the low to mid teens, while technology, pharma and consumer businesses can command 25× or more. Recent issues in your sector are the best benchmark.