September 2026 has offered a wide mix of initial public offerings, or IPOs. The companies come from different sectors and have different financial profiles. Their IPO structures also differ. Some issues raise fresh capital for the company. Others mainly allow existing shareholders to sell their shares through an offer for sale, or OFS. Some issues use both routes.
This difference matters when an investor studies an IPO. The total issue size alone does not show how much money the company will receive. A large IPO can have a small fresh issue and a large OFS component. In such a case, much of the money from the public issue goes to existing shareholders rather than to the company.
The September list also shows a wide gap in valuations. Based on the reported price-to-earnings, or P/E, figures, the companies in the list trade at valuations from about 11.1 times earnings to about 57.9 times earnings at the IPO price. The post-listing market price can, of course, change the valuation.
The table below keeps the reported data intact.
| IPO | Issue price | Valuation / P-E* | Fresh capital | OFS | Listing-day move |
|---|---|---|---|---|---|
| Rentomojo | ₹404 | ~40.7× P/E | ₹150 cr | ₹1,105.6 cr | +19.4% |
| Karamtara Engineering | ₹254 | ~35.7× P/E | — | — | +26.0% |
| LCC Projects | ₹146 | ~14.8× P/E | — | — | +29.4% |
| Steamhouse India | ₹81 | ~57.9× P/E | ₹353 cr | ₹61 cr | +16.7% |
| Manipal Payment & Identity | ₹339 | ~31.0× P/E | — | — | −2.6% |
| ARCIL | ₹139 | ~11.1× P/E | — | — | 0% |
| Glass Wall Systems | ₹182 | ~19.1× P/E | ₹60 cr | ₹367.9 cr | +6.6% |
| Kanohar Electricals | ₹632 | — | ₹300 cr | ₹755.7 cr | +8.5% |
| Prasol Chemicals | ₹676 | ~48.1× P/E | ₹80 cr | ₹420 cr | −9.8% |
| Pranav Constructions | ₹124 | — | ₹315.6 cr | ₹35.4 cr | +33.1% |
*The P/E figures are based on the reported IPO data. They may not be directly comparable in every case because the companies have different business models, financial periods and earnings profiles.
Issue price does not tell the full story
The issue price is one of the easiest IPO figures to understand. It tells investors the price at which shares are offered to the public. It does not, by itself, show whether that price represents a low, moderate or high valuation.
For that, investors also need to study earnings, debt, cash flow, growth, return ratios and the total number of shares after the IPO. The P/E ratio can offer one simple starting point. It compares the IPO price with the company’s earnings.
The September data show a large range.
ARCIL has a reported P/E of about 11.1 times. LCC Projects stands at about 14.8 times. Glass Wall Systems has a reported P/E of about 19.1 times. Manipal Payment & Identity has a P/E of about 31.0 times. Karamtara Engineering stands at about 35.7 times.
Rentomojo has a reported P/E of about 40.7 times. Prasol Chemicals stands at about 48.1 times. Steamhouse India has the highest reported figure in this table, at about 57.9 times.
These figures should not be treated as a simple score. A higher P/E does not automatically mean that a company is unsuitable for investment. A lower P/E also does not automatically mean that a company has lower risk. The reason for the valuation matters.
A company with high expected growth may receive a higher valuation than a company with slower growth. At the same time, a high valuation leaves less room for disappointment if future earnings do not match market expectations.
Fresh capital and OFS are two different things
The distinction between fresh capital and OFS is central to IPO analysis.
In a fresh issue, the company creates and sells new shares. The proceeds go to the company, subject to the stated use of funds. The company can use this money for purposes such as expansion, capital expenditure, debt repayment or general corporate needs, based on the IPO documents.
An OFS works differently. Existing shareholders sell their shares to public investors. The money from that portion generally goes to the selling shareholders rather than to the company.
This means that the headline size of an IPO should not be viewed as the amount of new capital available to the business.
Rentomojo provides a clear example. Its reported issue size includes ₹150 crore of fresh capital and ₹1,105.6 crore through OFS. The fresh issue therefore represents only about 12% of the total issue, while roughly 88% comes through OFS.
The distinction does not, by itself, make the IPO positive or negative. An OFS can provide an exit route to early investors or other shareholders. At the same time, an investor who wants to understand how much new money enters the company needs to focus on the fresh issue.
NSE shows why issue structure matters
The NSE IPO provides another important example. Its reported IPO size is ₹22,562 crore, and the issue is 100% OFS.
That means the public issue involves a large transfer of shares from existing shareholders to new public shareholders, rather than a fresh injection of IPO proceeds into NSE.
The figure of ₹22,562 crore therefore should not be read as ₹22,562 crore of fresh funds available to NSE for expansion or other corporate purposes.
This is an important point for any IPO analysis. Two companies can raise the same headline amount from the public, while the amount that reaches the company can be very different.
The distinction becomes even more important when investors compare companies from different sectors. A business that needs substantial capital for expansion may have a different IPO structure from a mature company whose existing shareholders want to reduce their holdings.
Steamhouse and Pranav show a different structure
Steamhouse India has ₹353 crore of fresh capital against a reported total issue of ₹414 crore. Its OFS component is ₹61 crore.
This means most of the issue proceeds come from the fresh issue. The company therefore receives a substantial part of the capital raised through the IPO, subject to the stated use of funds.
Pranav Constructions has a similar structure. It has ₹315.6 crore of fresh capital and ₹35.4 crore of OFS, for a reported total of about ₹351 crore.
These examples show why the fresh issue should be examined separately from the total IPO size.
Glass Wall Systems has ₹60 crore of fresh capital and ₹367.9 crore through OFS. Here, the OFS component is much larger than the fresh issue.
Kanohar Electricals has ₹300 crore of fresh capital and ₹755.7 crore of OFS. Again, the OFS portion is substantially larger than the amount of new capital.
Prasol Chemicals has ₹80 crore of fresh capital against ₹420 crore of OFS.
The data therefore show several different IPO structures within the same month.
Listing gains tell a separate story
The first-day market performance is another widely watched IPO measure. It shows the difference between the issue price and the market price after the shares begin trading.
The September data show considerable variation.
Pranav Constructions recorded a reported listing-day move of +33.1%. LCC Projects recorded +29.4%. Karamtara Engineering recorded +26.0%. Rentomojo recorded +19.4%. Steamhouse India recorded +16.7%.
Kanohar Electricals recorded +8.5%, while Glass Wall Systems recorded +6.6%.
ARCIL recorded 0%. Manipal Payment & Identity recorded −2.6%. Prasol Chemicals recorded −9.8%.
A first-day move should not be treated as a complete assessment of an IPO. It reflects the market price on a particular day. It can be affected by overall market conditions, demand and supply, investor expectations, sector sentiment and other short-term factors.
A company can have a positive first-day move and later trade below the issue price. The reverse can also occur. For that reason, listing performance is better viewed as one data point rather than as a complete measure of business quality or long-term value.
Valuation and market price must be read together
The September data also show why price performance and valuation should be kept separate.
LCC Projects has a reported P/E of about 14.8 times and a reported listing-day move of +29.4%. Steamhouse India has a reported P/E of about 57.9 times and a listing-day move of +16.7%.
This does not establish a direct relationship between valuation and first-day performance. It only shows that IPOs with different valuation levels can produce different market responses.
Prasol Chemicals has a reported P/E of about 48.1 times and a reported listing-day move of −9.8%. Rentomojo has a reported P/E of about 40.7 times and a reported listing-day move of +19.4%.
These figures show why a simple comparison of listing gains can miss an important part of the IPO story.
The valuation paid at the IPO stage matters because it sets the starting point for the public market. Future returns depend on what happens to earnings, cash flow, business conditions and the market valuation after the IPO.
Cash burn is an important missing measure
Cash flow deserves special attention in IPO analysis.
A company can report accounting profit and still have weak operating cash flow. This can happen for several reasons, including high working capital needs, capital expenditure or differences between accounting revenue and actual cash receipts.
For companies with negative operating cash flow, investors can examine cash burn. A simple measure is the amount of cash used by operations over a given period.
One useful comparison is the fresh IPO capital against the average annual cash burn.
For example, the basic question can be framed as follows:
Fresh IPO capital ÷ average annual cash burn
This does not predict how long the capital will last. It is only a simple way to understand the relationship between new capital and historical cash use.
The calculation also needs context. A company may have negative cash flow because it is in a period of expansion. Another company may have weak cash flow because its underlying business has structural cash pressure.
Therefore, cash burn should be read with revenue growth, margins, working capital, capital expenditure, debt and management’s stated use of IPO proceeds.
Rentomojo: price, OFS and capital structure
Rentomojo is notable because of the difference between its total issue and its fresh capital.
At an issue price of ₹404 and a reported P/E of about 40.7 times, the IPO came with a sizeable OFS component. Fresh capital stood at ₹150 crore, while OFS stood at ₹1,105.6 crore.
The reported listing-day move was +19.4%.
The structure means the company received substantially less fresh capital than the total amount represented by the IPO. Investors who study the issue therefore need to separate the two components.
The business also has capital needs linked to its model. Cash flow, asset use, subscriber behaviour and future capital requirements can affect the amount of cash the company needs over time.
These factors do not establish a future outcome. They simply show why cash flow deserves attention alongside revenue and profit.
The September picture
Taken together, the September data show a market with varied IPO structures and valuations.
Some issues have a large fresh component. Steamhouse India has ₹353 crore of fresh capital against ₹61 crore of OFS. Pranav Constructions has ₹315.6 crore of fresh capital against ₹35.4 crore of OFS.
Other issues have a much larger OFS component. Rentomojo has ₹150 crore of fresh capital against ₹1,105.6 crore of OFS. Glass Wall Systems has ₹60 crore of fresh capital against ₹367.9 crore of OFS. Kanohar Electricals has ₹300 crore of fresh capital against ₹755.7 crore of OFS. Prasol Chemicals has ₹80 crore of fresh capital against ₹420 crore of OFS.
The valuation range is also wide, from about 11.1 times P/E for ARCIL to about 57.9 times for Steamhouse India, based on the reported IPO figures.
The first-day market response ranges from −9.8% for Prasol Chemicals to +33.1% for Pranav Constructions.
No single number captures the full IPO picture.
What the scorecard can and cannot show
The data can show the IPO price, reported valuation, fresh capital, OFS size and first-day market response. These figures help explain the structure of each issue.
They do not, on their own, establish whether a particular IPO is suitable for an individual investor. That question depends on factors such as investment horizon, risk tolerance, financial goals and the investor’s own assessment of the company.
For a fuller analysis, the next step would be to examine revenue, EBITDA, PAT, operating cash flow, free cash flow, debt, return on capital and the stated use of IPO proceeds for each company.
The key point is simple: an IPO should not be judged only by its issue price or first-day return. The amount of fresh capital, the size of the OFS, the valuation paid and the company’s ability to generate cash provide important additional context.
September’s IPO data make that distinction particularly clear. A ₹22,562 crore OFS, a ₹1,256 crore issue with only ₹150 crore of fresh capital, and an issue with ₹315.6 crore of fresh capital can all appear under the broad label of an IPO. Economically, however, they represent different transactions.
That is why the most useful IPO scorecard is not just a table of listing gains. It is a combined view of price, valuation, fresh capital, OFS and cash flow.
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