Indian primary market ushered in an era of free pricing in 1992. SEBI does not play any role in price fixation. The issuer in consultation with the merchant banker on the basis of market demand decides the price. The offer document contains full disclosures of the parameters which are taken in to account by Merchant Banker and the issuer for deciding the price. The

Parameters include EPS, PE multiple, return on net worth and comparison of these parameters with peer group companies.