SEBI has made it mandatory for all IPOs to obtain grading from no less than one credit rating agency registered with SEBI. The grade shows the evaluation of the company’s fundamentals, future growth potential, and market comparisons with other listed equities at the time of issuance. This additional tool facilitates investors with the analysis for an investment decision. IPO grading is generally assigned on a five-point scale with higher grades indicating strong fundaments.
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