Let’s start to work together
MERCHANT BANKER VALUATION
WHEN IT IS REQUIRED?
- Issuance of Equity Shares/Preference Shares (Private Placement Basis)
- Issuance of Equity Shares/Preference Shares (Preferential Allotment)
- Issue of Compulsory convertible debentures to non-resident investors
- Issue of Right shares to non-resident investors
DOCUMENTS REQUIRED
- Detailed description of the business model of the Company
- What are the major risks in the business model of the Company?
- Historical audited financial statements of the Company for past 2 financial years.
- Financial statements of the Company till date
- Financial projections of the Company for 5 years in MS excel-Income statement,
balance sheet and cash flow statement. - Justification for the major assumptions used in the projections like sales growth, working capital and capital expenditure.
- Details of any prior investment in the company and the valuation report forming the
basis of the said investment. - Major competitors of the company-Both listed and unlisted.
- Details of any recent funding in comparable companies, if available.(Comparable company might be Indian or global)
- Term sheet.
FAQs
We can issue a Merchant Banker report in 5-10 working days.
No. If you are issuing the shares to the existing shareholders through rights issue, a Merchant Banker Valuation report is not required. Income tax authorities may still ask for the same.
As per the new rules of Income tax it is mandatory to get the share valuation done by the Merchant banker when a company issues the shares to the investors. This is to determine the fair value of shares. As per the new notification only Merchant bankers are allowed to give the valuation report. Earlier the CA’s were allowed to issue the same.
No a Merchant Banker report is not required if the CN are issued.
You do not require a merchant banker valuation report if you are issuing CCD to the domestic investors. You will require a valuation report to be submitted to RBI if you are issuing CCD to the foreign investors.