SEBI Valuation Consultants

A SEBI Valuation Report is a document prepared by a qualified professional, adhering to SEBI regulations, that estimates the fair value of an asset, business, or security. It’s mandatory for various corporate transactions involving listed companies.

Publicly listed companies typically require SEBI Valuation Reports for transactions like:

• Issuing shares for non-cash consideration to promoters.
• Delisting from stock exchanges.
• Open offers involving infrequently traded shares.

The type of valuer depends on the transaction:
Independent Valuer (BSE/NSE Empanelled): For exit opportunities for shareholders of Electronic Listing Companies (ELCs).
Chartered Accountant (CA): For valuing assets (business) offered as non-cash consideration to promoters.
Merchant Banker: For delistings and open offers with infrequently traded shares.

Three primary methodologies are employed:
Market Price Approach: Compares the subject to similar recently sold assets or companies.
Income Approach: Estimates the future income-generating potential of the asset or business.
Discounted Cash Flow (DCF) Method: Discounts the asset or business’s future cash flows to their present value.

Required documents can vary, but generally include:
Company financials (past 3-5 years).
Corporate documents (MOA, AOA, relevant resolutions).
Industry data and benchmarks.
Transaction details (parties involved, consideration type).

The timeframe can vary depending on the complexity of the transaction and the valuer’s workload. On average, it can take 2-4 weeks.

Benefits include:
Investor protection through fair and accurate valuations.
Enhanced market transparency with reliable information.
Streamlined compliance by adhering to SEBI regulations.
Fair pricing in transactions involving asset exchange or debt restructuring.

Companies may face regulatory penalties, legal issues, and potential delays in completing the transaction.

You can search online directories of SEBI-registered valuers or consult with financial advisors for recommendations.

Valuation under the SEBI Act refers to the process of determining the fair value of a company’s securities. This is essential for various regulatory purposes, including public offerings and compliance with SEBI regulations.

Yes, the valuation of shares is compulsory in certain situations, such as for public offerings, mergers and acquisitions, and compliance with regulatory requirements.

In addition to the general SEBI valuation documents (financial statements, MoA, AoA, etc.), IPO valuations require several specific documents:
Prospectus or Offer Document: This document provides detailed information about the company, including its business model, financials, risk factors, and management team.
Business Plan and Projections: Future financial projections and business plans are crucial for assessing the company’s growth potential.
Shareholding Pattern: This details the existing ownership structure, including promoters, institutional investors, and public shareholders.
Valuation Report: Prepared by a SEBI-registered merchant banker or an independent valuer, this report establishes the fair market value of the company.

Yes, depending on the company’s specific situation, additional documents might be required, such as:
Legal Documents: Details of any significant legal proceedings involving the company.
Corporate Governance Report: Information on the company’s corporate governance practices.
Details of Group Companies: Information about any subsidiaries or affiliated companies.

Unlike IPO valuations, mutual funds don’t require documents like business plans or shareholding patterns. However, they have their own set of crucial documents for valuation:
Scheme Information Document (SID): This document provides comprehensive details about the mutual fund scheme, including its investment objective, fees, and risks.
Statement of Additional Information (SAI): This document offers investors further information about the mutual fund and the fund house.
NAV Calculation Methodology: This document outlines the process used to calculate the Net Asset Value (NAV) of the mutual fund units.
Portfolio Holdings: Detailed information on the specific assets held by the mutual fund, including their weightings and valuations.
Valuation Policy: This document outlines the specific valuation methods used for different types of securities within the mutual fund portfolio.

While not mandatory, some additional documents can contribute to a more comprehensive valuation:
Audited Financials: Financial statements of the mutual fund scheme itself.
Compliance Reports: Reports demonstrating the mutual fund’s adherence to SEBI regulations.