Fatpipe Networks IPO failed to get full subscription within the prescribed 3 days with the issue getting subscribed by only 70% .Fatpipe Networks Review had revealed it to be a decent buy based on analyzing the DRHP prospectus.The reasons for the poor response may have been due to doubts being raised about the intangible assets and some rumors of labor investigation in the US.These did not seem a big issue to me especially when you compare it to the omissions and issues commonly found in Indian IPOs.Valuation looked reasonable without being very cheap for this company .The Book Running Manager had decided to extend the issue by 5 days and has lowered the price band slightly to Rs 80-85  from Rs 82-85.

Valuing the company based on  Price/Earnings as I have seen some commentators doing is not a very good method as the growth and earnings of the company will depend mainly on the Technology that the company possesses and the traction it will get after marketing expansion.At Rs 110 crore or ~$23 million Enterprise Value ( at the upped end of the price band), valuation does not seem absurdly high to me.However being a Small company in the Technology space,it  does make this issue a risky one compared to a run of the mill real estate,construction or transformer company.