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A preferential allotment enables a company to issue equity shares or other securities to a select group of investors, promoters, strategic partners, or existing shareholders. An independent valuation is essential to determine a fair issue price, ensure regulatory compliance, and provide transparency to all stakeholders. Our experts provide independent and reliable valuation services for preferential allotments in accordance with the Companies Act, 2013, SEBI Regulations, the Foreign Exchange Management Act (FEMA), and other applicable laws and regulatory requirements, delivering well-supported valuation reports that facilitate compliant and informed capital-raising transactions.
Choose the capital raising or share issuance transaction you're planning. Our independent valuation services help determine fair issue prices while ensuring compliance with the Companies Act, FEMA, RBI pricing guidelines, and other applicable regulatory requirements.
Determines the fair issue price of equity shares or other securities issued to raise capital for business expansion, acquisitions, working capital, or strategic initiatives.
Supports the issuance of securities to strategic investors, private equity funds, venture capital funds, and institutional investors through an independent valuation.
Provides valuation support where promoters subscribe to additional shares through a preferential allotment to strengthen the company's capital base.
Determines the fair value of equity shares, preference shares, convertible debentures, warrants, and other securities issued through a private placement.
Supports valuation for the conversion of preference shares, debentures, warrants, and other convertible instruments into equity shares.
Provides valuation for preferential allotments involving resident and non-resident investors in accordance with the Foreign Exchange Management Act (FEMA), Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and RBI pricing guidelines.
For listed companies, the minimum issue price for a preferential allotment is determined in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, based on the higher of:
the volume weighted average price (VWAP) of the related equity shares during the 90 trading days preceding the relevant date; or
the volume weighted average price (VWAP) during the 10 trading days preceding the relevant date.
Determines the fair value of the company by estimating the present value of its expected future cash flows. Commonly used for unlisted companies and FEMA pricing requirements.
Estimates value using valuation multiples derived from comparable listed companies and market transactions.
Determines value by applying valuation multiples of comparable publicly listed companies operating in similar industries.
Determines value using pricing multiples observed in comparable investment and acquisition transactions.
Determines value based on the fair value of the company's underlying assets less liabilities, particularly for investment holding and asset-intensive companies.
India's most trusted SEBI Cat-I Merchant Banker & IBBI Registered Valuer Entity. 3000+ valuations delivered. Certified reports in 7 business days.
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