Share Valuation Services in Bangalore, India

Share Valuation Services

My Valuation – Share Valuation Services In Bangalore

Share valuation is a dynamic approach for defining the current value of a share by requisition methods quantitatively that assist businesses to understand whether that share is under or overvalued, that add parameters to their forthcoming economic decisions, and carrying actions as needed.

An investor should be able to differentiate between crucial data, and irrelevant clutter and also acknowledge the primary share valuation methods as well as the circumstances under which they are applied.

There are various methods of valuation of shares, it is generally acknowledged to be a highly complicated process that incorporates both art and science. Investors may find it difficult to make sense of the vast amount of information that is potentially accessible and that can be used to evaluate organizations (such as business financials, newspapers, economic data, share reports, etc.). Summing these complexities with accurate valuation solutions makes My Valuation one of the most trustworthy share valuators of Bangalore and even across India with objectives that assure businesses’ economic stability.

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Share Valuation Services at My Valuation

Share valuation is the process of figuring out a company’s shares worth. Share value changes depending on market supply and demand and is calculated using mathematical techniques. The share price of publicly traded listed firms is easy to ascertain. However, it is a necessary and challenging task to value shares in private firms whose share is not traded publicly. We; My Valuation – IBBI Registered Valuators is equipped with a team of experienced and qualified valuators that tailor business’ scope and needs and fulfill them by offering accurate and transparent valuation conclusions which make us stand as one of the most trustworthy valuators in Bangalore, India and also a well-known source of providing share valuation service in India.

Our valuation report provides an overview of the company, industry, and economy; discusses value drivers; outlines the analysis performed, along with the inputs and assumptions; and incorporates detailed exhibits that support our valuation determination that ensures maintaining compliance and secures the company and their shareholder. This process gets next to mandatory for startups and mid-size businesses to get a valuation of shares as it enables them to measure current share valuation report, financial statements, and successive business decisions.

What Approach Should be used for Share Valuation?

The approach of Share Valuation clearly depends on the intention of valuation, which can be puzzling to pick and for exactly what Share Valuators are hooked for. Following are some mainly used Share Valuation Approaches

Asset Approach:

The Asset Valuation Approach is a sort of business valuation primarily focused on Net Assets Value (NAV) – summed by deducting total liabilities from total assets. In conclusion, business gets help to demonstrate the assets driven from the income and market approaches. This asset valuation gets divided by the digits of the shares from which the value of each share gets estimated.

Income Approach:

It is basically concentrated on the expected benefits which are going to be generated by the investment business places in the future. Value Per Share is one of the most preferred methods of this approach in which calculation is done on the basis of available profit to get distributed to shareholders and determined by subtracting funds and taxes from the net profit.

Market Approach:

By corresponding to the market prices of business assets that have recently been sold, or yet available get estimated in Market Approach. Business Value, interest in firm ownership, and even security get parameters with this approach. Price indicators such as price-to-earnings, sales, and MRP are usually used in this approach.

Why Should a Company Get its Share Valued?

Analysts use share value patterns to evaluate a company’s overall health. To estimate whether a company’s share price appropriately represents its earnings, investors may look at price-to-earnings (P/E) ratios and earning history. Using all of this information, analysts and investors may assess a company’s long-term viability.

When Share Valuation is Required?

1. When you need to determine your firm’s value or want to sell it.

2. Shares owned by an investment firm that compensates the owners after nationalizing the business

3. When a company’s shares are about to be converted, going from equity to preference

4. Determining tax obligations under the wealth tax or gift tax legislation

5. When creating an employee share ownership plan (ESOP), the need for the valuation of shares provokes.

6. When shares to the company are changed from preference to equity.

7. Share valuation also holds primer importance in legal procedures such as wealth tax or gift tax.

8. In lawsuits where share valuation is legally bounded.

Below is the Ready Reckoner for the valuation transactions covered in the case of Private, unlisted Public companies, and listed companies under the Companies Act 2013, SEBI, and Income Tax Act 1961:

Nature of Transaction	Private Company	Unlisted Public Company	Listed Public Company
Fresh Issue/ preferential allotment (Rule 13 of SCD Rules, 2014	Yes- by RV (sec 42 and 62 of CA 2013)	Yes- by RV (sec 42 and 62 of CA 2013)	Not required, if frequently traded shares.If shares not traded frequently, then issue price can be valued by MB or CA. (Reg 76A of ICDR)
Rights Issue	Not Required (sec 62 of CA 2013)	Not Required (sec 62 of CA 2013)	Not Required (ICDR)
Employee Stock Option Scheme	Not Required (sec 62 of CA 2013)	Not Required (sec 62 of CA 2013)	Not Required (SEBI Reg)
Bonus Issue	Not Required	Not Required	Not Required
Employees Stock Purchase Scheme (Rule 16 of SCD Rules)	Yes- by RV (sec 67 of CA 2013)	Yes- by RV (sec 67 of CA 2013)	Not Required (sec 67 of CA 2013)
Valuation of Assets Involved in Arrangement of Non cash transactions involving Directors	In case of sales or purchases of any asset between the company and directors of the company (or its subsidiary company, holding company or associate company) or a person connected with the director for consideration other than Cash, in this scenario value of transaction will be calculated by the RV. Section 192(2) of CA, 2013.	In case of sales or purchases of any asset between the company and directors of the company (or its subsidiary company, holding company or associate company) or a person connected with the director for consideration other than Cash, in this scenario value of transaction will be calculated by the RV. Section 192(2) of CA, 2013.	In case of sales or purchases of any asset between the company and directors of the company (or its subsidiary company, holding company or associate company) or a person connected with the director for consideration other than Cash, in this scenario value of transaction will be calculated by the RV. Section 192(2) of CA, 2013.)
Sweat Equity (rule 8 of SCD Rules)	Yes- by RV (sec 54 of CA 2013)	Yes- by RV (sec 54 of CA 2013)	Yes- by MB (valuation of IP or value addition) or CA (certification that valuation is in accordance with AS)(Reg 8 of SEBI SE Regulations)
Buyback of shares	Not required but valuation report can be obtained from MB, CA or RV for justifying the buyback price (rule 17 of SCD Rules, Sec 69 of CA 2013)	Not required but valuation report can be obtained from MB, CA or RV for justifying the buyback price (rule 17 of SCD Rules, Sec 69 of CA 2013)	Not required but valuation report can be obtained from MB, CA or RV for justifying the buyback price (rule 17 of SCD Rules, SEBI Buyback Reg)
Purchase of Minority Shareholding	Shares of Minority shareholding can be acquired at price calculated by RV. (Sec 236 of CA 2013)	Shares of Minority shareholding can be acquired at price calculated by RV. (Sec 236 of CA 2013)	MB as per SEBI Circulars
Mergers & Amalgamationsg	Yes- by RV (sec 230 of CA 2013 Rule 6(3) of Merger Rules)	Yes- by RV (sec 230 of CA 2013 Rule 6(3) of Merger Rules)	Yes- by CA (SEBI Circulars)
Reverse Merger- Exit price for shareholders	Not Applicable	Not Applicable	Yes- by RV (Sec 230(3)(h) of CA 2013)
Scheme of Corporate Debt Restructuring	Yes- by RV	Yes- by RV	Yes- by CA (cases not exempt from ICDR) or RV (for cases exempt from ICDR) (Reg 158(7) of ICDR)
Conversion of Debt into equity shares	Not required	Not required	Yes- by CA (cases not exempt from ICDR) or RV (for cases exempt from ICDR) (Reg 158(7) of ICDR)
Report on effect of compromise	Yes- by RV, MB CA or any other advisor (Sec 232(2)(c) of CA 2013)	Yes- by RV, MB CA or any other advisor (Sec 232(2)(c) of CA 2013)	Yes- by RV, MB CA or any other advisor (Sec 232(2)(c) of CA 2013)
Fairness Opinion on Scheme of Mergers or Amalgamation	Not Required	Not Required	Yes- by MB (SEBI circulars)
Accounting Standards	If valuation report is required to be obtained, then such valuation shall be done by RV (s 133 and s 247 of CA 2013)
Delisting regulations	Not Applicable	Not Applicable	Valuation can be done by RV, CA or MB (s 247 of CA 2013, Reg 23 of SAST
FDI Regulations- Issue of shares/ securities to NR	Yes- by MB, AC or Cost Acc (Reg 11 of FEMA 20(R)	Yes- by MB, AC or Cost Acc (Reg 11 of FEMA 20(R)	Yes- as per SEBI reg (Reg 11 of FEMA 20(R))
SEBI (REIT) Regulations- valuation of assets	Yes- by RV (Reg 2(zz)of SEBI (REIT) Reg)
SEBI (INVIT) Regulations- valuation of assets	Yes- by RV (Reg 2(zzf)of SEBI (INVIT) Reg)
Valuation under IBC	Yes- by RV (IBBI Circular dated Oct 17, 2018)
Under Income Tax Act 1961 Fresh Issue and transfer at: Face Value Premium Fair Market Value by DCF FMV by NAV (S 56(2) of IT Act, Rule 11UA)	Not Required Any Valuer (MB/ CA/ RV) MB only Any Valuer	Not required Any (MB/ CA/ RV) MB only Any Valuer	It shall only take place in open market at FMV, thus no valuation prescribed for the same.
Transfer of shares at less than FMV (u/s 50CA)	Any Valuer	Any Valuer	Not applicable
Preferential Allotment (S 56(2)(Rule 11UA)	If shares issued at premium, then valuation by any valuer (MB, CA or RV)	If shares issued at premium, then valuation by any valuer (MB, CA or RV)	If shares issued at premium, then valuation by any valuer (MB, CA or RV)
Rights Issue (S 56(2) (Rule 11UA)	In case shares issued at premium, valuation may be required by any Valuer (MB, CA or RV).	In case shares issued at premium, valuation may be required by any Valuer (MB, CA or RV).	In case shares issued at premium, valuation may be required by any Valuer (MB, CA or RV)

Who is Qualified to Perform Share Valuations?

Registered Valuer

Merchant Banker

Simplified and Secure Share Valuation Reports from My Valuation:

In the business world, handling economic data is the keenest point for that instead of taking a general approach, preferring a lending hand of renowned and secure valuator always stands for a good call. My Valuation refers to the category of that lending hand, offering service of share valuation service in Bangalore with an amplitude of all valuation services customized as per business objectives that ensure better and firm business economic decisions.

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