Dhruv Dua & Co. prepares share and business valuations for foreign investment pricing under FEMA, overseas acquisitions, income tax and fund raising. Where the law requires a registered valuer or a merchant banker, we prepare the financial model and work with that professional to the final report.
What does valuation cover?
- FEMA pricing. Valuation of unlisted shares for issue or transfer between residents and non-residents on an arm's length basis, using internationally accepted pricing methodology.
- Overseas investment. Valuation of foreign targets for investments under the overseas investment rules.
- Income tax. Fair market value of shares for issue, transfer and tax proceedings.
- Private placements and ESOPs. Valuation support for share issues and employee stock options.
- Litigation support. Defence of discounted cash flow valuations questioned in assessment, including share premium disputes.
How does the work run?
- Purpose and governing rule identified first, because the rule decides the method.
- Business plan and projections reviewed with management.
- Model built: discounted cash flow, net asset value or market multiples.
- Draft discussed, assumptions documented.
- Final report issued.
Who is this for?
- Companies issuing shares to foreign investors
- Indian companies acquiring businesses abroad
- Start-ups raising a round
Frequently asked questions
Who can issue a valuation report for foreign investment in an unlisted Indian company?
For unlisted companies, the foreign investment rules require the valuation to be done on an arm's length basis using an internationally accepted pricing methodology, certified by a chartered accountant, a SEBI-registered merchant banker or a practising cost accountant.
Which valuation method is used?
It depends on the purpose and the business. Discounted cash flow is common for growing businesses, net asset value for asset-heavy or early companies, and market multiples where comparable companies exist.