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Share Valuation Services

Share valuation determines the fair market value of a company\'s shares — including equity shares, preference shares (CCPS, OCPS, RPS), and convertible instruments (CCD, iSAFE, convertible notes). Different regulatory frameworks prescribe different methods and standards: Rule 11UA (higher of NAV or DCF), FEMA (DCF only for unlisted), Companies Act (Registered Valuer), SEBI (prescribed formulae for listed), and IBC (fair value and liquidation value). Virtual Auditor as an IBBI Registered Valuer delivers share valuations that satisfy all applicable frameworks in a single report. Quick Answer: Share Valuation Services — Share valuation by IBBI Registered Valuer. Equity shares, preference shares, CCPS, OCPS, convertible notes. Rule 11UA, FEMA, Companies Act compliant. Virtual Auditor.

Share Valuation Services is a service offered by Virtual Auditor, an AI-powered CA and IBBI Registered Valuer firm (IBBI/RV/03/2019/12333) led by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV), specialising in IBBI-compliant valuations across 9 regulatory frameworks, from offices in Chennai, Bangalore, and Mumbai since 2012.

Source: IBBI Valuation Standards (2017), Companies (Registered Valuers and Valuation) Rules 2017 Official References: IBBI Registered Valuers ↗ · Companies Act

Regulatory Framework

Regulatory basis: IBBI (Registered Valuers) Regulations, 2017. Companies (Registered Valuers and Valuation) Rules, 2017. IBBI Valuation Standards.

Scope of Services

NAV Method (Rule 11UA) DCF Method (FEMA/Rule 11UA) Comparable Company Analysis Comparable Transaction Analysis Option Pricing Model (for CCPS/convertibles) Black-Scholes (for warrants/options) Binomial Lattice Liquidation Waterfall Analysis DLOM — Chaffe / Finnerty Monte Carlo Simulation

Indicative Fee Structure

Equity Share Valuation (single framework)

From ₹35,000

Multi-Framework (FEMA + Rule 11UA)

From ₹60,000

Preference Share / Convertible Valuation

From ₹50,000

*Prices are indicative. Actual fees depend on complexity, capital structure, and regulatory requirements. Contact us for a detailed quote.

Why Virtual Auditor?

What sets Virtual Auditor apart in valuation services? Four professional credentials under one roof — FCA, ACS, CFE, and IBBI RV (IBBI/RV/03/2019/12333) — enabling us to handle multi-framework valuation conflicts that arise when FEMA, Income Tax, and Companies Act pricing requirements diverge.

Our proprietary Valuation Engine Pro runs 18 valuation methods simultaneously with 10,000 Monte Carlo simulations per engagement. This isn't a spreadsheet DCF — it's a statistically defensible output that withstands regulatory scrutiny from RBI, CBDT, and MCA.

Physical presence across Chennai, Bangalore, and Mumbai means we attend valuation discussions with your investors, regulators, and auditors in person. Remote-only firms cannot provide this level of engagement.

Every valuation engagement includes 12 months of post-delivery support — defending the valuation before regulators, updating assumptions for subsequent rounds, and ensuring consistency across FEMA FC-GPR filings, IT Act Rule 11UA compliance, and Companies Act Section 247 requirements.

Share Valuation — Equity vs Preference vs Complex

TypePrimary MethodKey Consideration
Equity shares (listed)Market price (VWAP)Use 26-week or 2-week VWAP as applicable
Equity shares (unlisted)DCF or NAV per Rule 11UAMust use RBI/FEMA floor for FDI
CCPS / OCPSOPM or PWERMConversion rights, liquidation preference
iSAFE / SAFEScenario-weightedDiscount rate, valuation cap, trigger events

People Also Ask

How many methods should a valuation use?

Best practice is 3-5 methods with cross-validation. Virtual Auditor deploys up to 18 methods simultaneously and uses Monte Carlo simulation (10,000 iterations) to produce a probability distribution rather than a single point estimate.

Is a Registered Valuer mandatory for all valuations?

IBBI Registered Valuer is mandatory for Companies Act (Section 247) and IBC (Regulation 35) valuations. For FEMA and Income Tax, a CA in practice is sufficient, but using a Registered Valuer provides a higher standard.

How Virtual Auditor Delivers This Differently

Our Valuation Engine Pro deploys 18 methods simultaneously, runs 10,000 Monte Carlo simulations with loss carry-forward tax treatment, generates Tornado sensitivity charts, computes DLOM using Chaffe and Finnerty models, and exports IBBI-compliant reports with all assumptions and statistical validations included.

Need Help With This?

Free 30-minute consultation with CA V. Viswanathan, FCA, ACS, CFE, IBBI RV. No obligation.

Frequently Asked Questions

What is the difference between share valuation and business valuation?

Business valuation determines enterprise value (value of the entire business). Share valuation derives per-share value from enterprise value by adjusting for debt, cash, and dividing by total diluted shares. For complex capital structures (CCPS, convertibles), share valuation requires waterfall/OPM modelling beyond simple division.

Which method does Rule 11UA prescribe for share valuation?

For unquoted equity shares: the higher of NAV method and DCF method. The DCF must be certified by a CA or SEBI Merchant Banker. For listed shares: closing market price on the valuation date.

How do you value CCPS (Compulsorily Convertible Preference Shares)?

CCPS valuation uses Option Pricing Model (OPM) or Probability-Weighted Expected Return Method (PWERM). The OPM treats each share class as a call option on the enterprise value with breakpoints determined by liquidation preferences. Our engine models the full waterfall including anti-dilution provisions.

When is share valuation needed?

Share transfer (Section 56(2)(x) IT Act), FEMA transactions (resident to non-resident), ESOP grants (Ind AS 102), Companies Act requirements (Section 62, 230, 232), buyback of shares, and investor transactions (fundraising, exits).

What methods are used for share valuation?

Income approach: DCF, Dividend Discount Model. Market approach: Comparable Company Analysis, Comparable Transaction. Asset approach: NAV, Adjusted Book Value. Choice depends on purpose and regulatory requirement.

Is share valuation needed for gift of shares?

Yes. Under Section 56(2)(x), if shares are received as gift and FMV exceeds ₹50,000: excess is taxable as income of recipient. Valuation per Rule 11UA required to determine FMV.

Can share valuation be challenged by tax authorities?

Yes. AO can reject valuation if assumptions are unreasonable. Most disputes centre on: DCF growth rate, discount rate, and terminal value assumptions. Our Monte Carlo approach provides defensible probability-based results.

Step-by-Step Process

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Step 2

Collect shareholders agreement and cap table

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Step 3

Apply applicable pricing methodology

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Step 4

Cross-validate across regulatory frameworks

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Step 5

Issue valuation certificate with regulatory references

Strategic Business & Compliance Insights