Comment on The IPO Markets - Part 1

Sangam Ghosh commented on 13 May 2016, 05:57 AM

I have a small doubt, you may call it silly. As you have mentioned “The VC is valuing the entire business at INR 50 Crs by valuing his 14% stake in the company at INR 7Crs. With the initial valuation of 5Crs, there is a 10 fold increase in the company‚Äôs valuation”. How did the valuation change such rapidly? If I may add up initial 5Crs and 7Crs by VC, then it amounts to 12Crs. Did the rest come from revenue generated by the company?

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