How We Score Financial Products
Every financial product receives a single Score (0–100) built from our independent assessments. Let’s take the example of IPOs to explain this. We publish two scores in case of an IPO. First part of the score measures the listing day potential and the second measures long-term business quality. Both scores are combined through our proprietary verdict matrix to produce one clear recommendation.
Score A — Listing Day Potential
Listing Day MomentumScore A predicts how an IPO is likely to perform on its listing day. It is the only live component of our scoring system — updated daily during the subscription window as new market data comes in.
Score B — Long-Term Business Value
Long-Term Business QualityScore B evaluates the intrinsic quality of the business itself — independent of market sentiment, GMP, or subscription hype. It is derived entirely from the Red Herring Prospectus and locked at IPO open. It never changes.
Score A Evaluation Dimensions
Score A evaluates four core dimensions to gauge short-term potential.
Real-time subscription momentum, grey market signals, and the pace at which institutional and retail investors are bidding during the IPO window.
A quick-pass filter on revenue trajectory, profit margins, and earnings quality to ensure the company isn't fundamentally distressed before scoring the rest.
The qualitative factors that drive investor excitement — founder credibility, brand recognition, whether the company leads its category, and current sector momentum.
The broader backdrop at the time of listing — index direction, institutional flows, and how many competing IPOs are splitting investor attention that week.
Combined Verdict
Synthesis of Listing Day Potential and Long-Term Quality
Both scores feed into a proprietary verdict matrix that produces one actionable recommendation. This helps investors identify the right balance of listing prospects and underlying business fundamentals.
Strong listing prospects and excellent business fundamentals. High margin of safety.
Favorable risk-reward. Reasonable pricing relative to growth prospects, allowing listing day or medium-term upside.
Balanced offering. Priced appropriately in line with historical financials, peer average, and market sentiment.
Premium pricing. Stretched multiples that leave minimal margin of safety, dependent on exceptional future growth.
Stretched valuation. Priced at a significant premium to peers without supporting fundamentals, posing high risk of post-listing pressure.
Automatic Safeguards & Capping
The model applies a series of automatic safety checks. If certain financial red flags are detected in the RHP (such as consistently negative cash flows, extreme leverage, or suspicious profit jumps before the IPO), the score is capped regardless of how strong the market signals look. These safeguards exist to protect investors from fundamentally weak businesses riding temporary market hype.
Regulatory Notice
Praman Ank is a data-scoring tool. Not SEBI-registered investment advice.
The parameter weights and detailed scoring logic are proprietary. This page displays the evaluation categories and parameters transparently to support your independent decision-making process. All scores represent interpretive signals, not recommendations.