Our AI Methodology
How ViewIPO processes 400-page regulatory filings in seconds to calculate institutional-grade risk scores.
The 400+ Point Audit
When a company files a Draft Red Herring Prospectus (DRHP) with SEBI or an S-1 with the SEC, they are legally required to disclose all material risks. However, these risks are often buried deep within hundreds of pages of complex legal terminology.
ViewIPO's proprietary Natural Language Processing (NLP) pipeline ingest these documents and runs over 400 deterministic checks. We look for specific patterns: sudden changes in auditor, pending litigation against promoters, massive related-party transactions, and accounting red flags.
The 6 Risk Pillars
The final 0-100 IPO Score is calculated using a weighted matrix across six fundamental pillars.
1. Governance & Legal (25%)
Evaluates board independence, promoter history, pending criminal or civil litigation, and auditor reputation. High risk here severely caps the total score.
2. Valuation (25%)
Compares the asking P/E, P/B, and EV/EBITDA multiples against listed industry peers to determine if the IPO is priced fairly or at an excessive premium.
3. Financial Health (20%)
Analyzes historical revenue growth, EBITDA margins, debt-to-equity ratios, and operating cash flows over the last 3 fiscal years.
4. Promoter/Management (10%)
Assesses the experience of the management team, promoter shareholding patterns post-issue, and executive compensation fairness.
5. Dilution & Objects (10%)
Checks if the funds raised are actually going towards company growth (Fresh Issue) or simply allowing existing investors to cash out (Offer for Sale).
6. Competition (10%)
Evaluates the company's market share, economic moat, and the barriers to entry in their specific industry vertical.