IPO RoNW / ROE Calculator
Calculate Return on Net Worth (RoNW) — how much profit a company generates for every rupee of its own shareholders' capital — from PAT and net worth. RoNW figures are only on file for a small slice of our IPO catalog today, so this is primarily a manual tool: type in the numbers from any company's RHP, or pick an IPO above and it will fill in what happens to be available.
RoNW (Return on Net Worth)
16.67%
PAT ÷ Net Worth — the return the company generated on shareholders' own capital, the same metric SEBI requires in the "Basis for Issue Price" table.
How the IPO RoNW / ROE Calculator works
RoNW = Profit After Tax (PAT) ÷ Net Worth, expressed as a percentage. It measures how efficiently a company turns its own shareholders' capital (equity + reserves, not borrowed money) into profit — the higher the RoNW, the more profit generated per rupee of shareholder capital.
SEBI requires every mainboard IPO to disclose RoNW in its RHP's "Basis for Issue Price" section, usually for the last three fiscal years, specifically so investors can judge whether the issue price is justified by the company's actual return profile rather than just its growth story.
"ROE" (Return on Equity) is the more commonly used term outside IPO filings, and for a pre-IPO company the two are calculated the same way — this calculator treats them as interchangeable. If our database has a computed figure or the DRHP's own stated figure for the selected IPO, both appear below your result for comparison; small differences from your manual calculation are normal (different filings sometimes average net worth across the year instead of using the year-end figure).
Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.