Raise Funds

Share Valuation Report

Valuation of Share is an exercise to determine the Fair Market Value of Unlisted Shares. While it is easy to gauge the Valuation of Listed shares (Price quoted in the market), for Unlisted shares - it often becomes very difficult to fairly understand the Value per share. Valuation exercise is thus done to fairly calculate and understand the Value per share of an Unlisted Company (Private & Public). Requires deeper understanding of numbers, calculation and financial projections.

Complete By* : 10 Mar, 2024

Pricing Summary

Traditional CA/CS Price : ₹ 200,000 /-

Other Online Price : ₹ Not Available /-

Our Base Price : ₹Price on Request /-

Govt. fees & taxes : ₹As per govt rates /-

You Pay: Price on Request/- all inclusive

Government Fee included in above

You Save : ₹ /-

What do you get?

Share Valuation Report based on DCF

Certificate from a Category I Merchant Banker

Share Valuation Report based on Book Value Formula

Presentation in PDF format

Certification from Registered value

Why Should You Choose SeedUp for

Making Share Valuation Report ?

SAVINGS

in cost, most economical

FASTEST

completion of assignment

EXPERTISE

experts guide you to bring clarity in your ideas

CALCULATION

Professionally calculated and tallied and verified

CERTIFICATION

From registered Valuers and Merchant Bankers

What is Share Valuation Report 

Valuation of Share is an exercise to determine the Fair Market Value of Unlisted Shares. While it is easy to gauge the Valuation of Listed shares (Price quoted in the market), for Unlisted shares - it often becomes very difficult to fairly understand the Value per share. Valuation exercise is thus done to fairly calculate and understand the Value per share of an Unlisted Company (Private & Public). Requires deeper understanding of numbers, calculation and financial projections. Share Valuation report is often required by different departments of Government (Ministry of Corporate Affairs, Income Tax Department) for specific purposes. Government has for this purpose also identified people / entities with specific qualifications / accreditations to be able to certify these reports. Thus the valuation report is mainly required for the following purposes: 

Merger and Amalgamation

 

  • Rights Issue (to existing Non-Resident shareholders)
  • Preferential allotment of shares
  • Private Placement of shares
  • Purchase of minority shareholding by majority shareholders
  • Buy back of Shares
  • Issue of convertible Instruments such as Fully Convertible Preference Shares (FCPS) / Fully Convertible Debentures (FCDs) on preferential basis / private placement basis
  • Acquisition of assets by a Company from a Director or a person connected with such director for consideration other than cash
  • Issue of Bonds/ Debentures
  • Acceptance of Deposits
  • Issue of Employee Stock Option Plans/ Sweat Equity shares
  • Issue of shares for Consideration other than cash
  • Valuation Requirement as per IND AS 113 (If opted for revaluation approach instead of cost approach)
  • Certain Related party transactions as covered u/s 46(2) of the IBC Code, 2016
  • Valuation of assets for submission of report by the liquidator
  • Voluntary Liquidation of the Company

Documents Required

Tax returns and/or financial statements (income statements and balance sheets)

Payroll, fixed asset/depreciation, inventory reports

Payables and Receivables aging reports

Corporate records such as by-laws, articles of incorporation/formation, minutes of board meetings, etc.

Loan documents for Key Loans

* (All documents in Pdf scanned. Image file in jpeg format)

* (All documents to be Self Attested and signed on each page)

Raise Funds

Share Valuation Report

Valuation exercise is thus done to fairly calculate and understand the Value per share of an Unlisted Company (Private & Public), the report of such Valuation is called Share Valuation Report

Steps for Pitch Deck

Video Call with Expert

Understanding why the Business is being Valued

Gather the information: The financial information is paramount to most business valuations, whatever the end purpose3-5 years of income statements and balance sheets is ideal. If the business property is leased, the lease agreement is needed as well as an

Recast the financials: To determine the actual profitability of such businesses, the financial statements need to be adjusted. An add-back schedule will allow a prospective purchaser and their financial adviser the ability to recognise the actual operatin

Choose the business valuation approach: Most known business valuation methods fall under one or more of these fundamental approaches: Asset approach, Income approach, Market approach

Apply the business valuation approach: Once the data has been assembled and the business valuation approach chosen, the result should produce an accurate, concise and easily justifiable results.

The business value conclusion: The resulting report should explain the processes and justifications that have been applied to the valuation, culminating in a valuation report that is applicable and pertinent to the reasons for the valuation.

Important elements of

Share Valuation Report

Important elements of Share valuation report, that one should consider

Identification of Professional

Entity should identify and appoint the right professional for the job. Appointing someone with no experience or understanding will lead to miscalculation and issues with with government agencies and authorities.

DCF Method

If valuation is as per Discounted Cash Flow (DCF) Method – Valuation is to be carried out by a Registered Valuer (RV) who is also a SEBI Registered Category I Merchant Banker

NAV Method

If valuation is as per Net asset Value (NAV) Method or any other method – Valuation can be carried out by a Registered Value (RV)

Provisions of section 56(2) read with Rule 11 UA

The provisions of section 56(2) (x) read with Rule 11UA (1) (c) (b) has to be kept in mind from the recipient perspective.

Benefits and Methodology

Benefits 

  • Financial report purposes
  • Greater knowledge of company assets 
  • Broader understanding of Company resale value 
  • High bargaining power during merger / acquisition 
  • Access to more Investors 
  • Raising Funds 

Methodology

 

If valuation is as per Discounted Cash Flow (DCF) Method – Valuation is to be carried out by a Registered Valuer (RV) who is also a SEBI Registered Category I Merchant Banker 

 

If valuation is as per Net asset Value (NAV) Method or any other method – Valuation can be carried out by a RV 

 

The provisions of section 56(2)(x) read with Rule 11UA(1)(c)(b) has to be kept in mind from recipient perspective. 

 

Ideal steps for tax neutral allotment in the hands of issuer and subscriber:

 

Step 1- Value as per section 56(2)(x) read with Rule 11UA(1)(c)(b) i.e. NAV method considering market value of jewellery, archeological collection, stamp duty value of land and building etc. 

 

Step 2- If one is adopting DCF method, ensure that value as per Step 1 is considered 

 

Step 3- If one is adopting NAV method, then adopt price as per step 1 and state that it falls within other method to the satisfaction of Assessing Officer (AO)