IBBI Registered Valuer in Chennai

Chennai, Tamil Nadu+91 9176044244 / +91 9962260333

CA V. Viswanathan is an IBBI Registered Valuer for securities or financial assets (IBBI/RV/03/2019/12333). We value equity and preference shares, debentures and other financial assets of companies in Chennai for fund-raising, share transfers, FEMA, ESOPs and insolvency. This page covers the law that applies and links to every Chennai area we serve.

Chennai valuations we see most are for foreign-subsidiary share issues, start-up rounds and NCLT-related matters.

Our share valuation work in Chennai

Fund-raising: share valuations for new investors and rights issues
ESOPs: valuations for ESOP pricing and Ind AS 102 accounting
FEMA: valuations for share issues and transfers involving non-residents
Insolvency: fair value and liquidation value of securities and financial assets
Disputes and restructuring: family settlements, buy-outs and mergers

When is a registered valuer's report required?

Under the Companies Act, 2013 a valuation by a registered valuer is needed for a preferential allotment or private placement of shares (sections 42 and 62(1)(c)), for non-cash transactions with directors (section 192), for compromises, arrangements and mergers (section 230) and for buying out minority shareholders (section 236). Under the Insolvency and Bankruptcy Code, the resolution professional appoints two registered valuers for each asset class to determine fair value and liquidation value (Regulations 27 and 35 of the CIRP Regulations).

What about FEMA and income-tax valuations?

When shares are issued to, or transferred between, residents and non-residents, FEMA requires the price to be at least, or at most, the fair value worked out under an internationally accepted pricing method and certified by a chartered accountant, a SEBI-registered merchant banker or a practising cost accountant. For income tax, the fair market value rules for unquoted shares set out which methods are allowed and, for some of them, who must sign the report. We tell you which report each purpose needs before starting.

How do we value shares?

We use income, market and asset approaches as the facts allow: discounted cash flow for businesses with reliable projections, comparable companies and transactions where data exists, and net asset value for holding and asset-heavy companies. Every report states its assumptions, sensitivity to key inputs and the reasons for the method chosen. The registration covers securities and financial assets only; land, buildings and plant are valued by valuers registered in those classes.

What Businesses in Different Parts of Chennai Need

Residential neighbourhoods

Start-ups based here mostly come to us for their first priced round, ESOP pool valuation and the FEMA certificate if a foreign investor joins.

Village areas

Agro-processing companies and Farmer Producer Companies here need valuations mostly for bank funding, investor entry and restructuring.

Colleges and universities

Section 8 companies and education-related companies here occasionally need valuations for restructuring or for transfers between group entities.

Factories and industrial estates

For manufacturing companies here, valuations usually come up when a promoter brings in a new investor, buys out a family member, or when a bank or an insolvency process needs fair and liquidation values of the shares.

Markets and bazaars

Family trading companies here need valuations most often when shares pass between relatives or when a partner exits after conversion to a company.

Hospitals and clinics

Hospitals and diagnostic companies here commonly need valuations when doctors or investors take equity, or when one group company buys another.

Courts, collectorates and offices

Companies in professional and institutional activity here usually need valuations for shareholder exits, partner buy-outs on conversion to a company, and court- or tribunal-driven matters.

Airport and port areas

Trading and logistics companies with foreign shareholders here need FEMA pricing certificates each time shares are issued or transferred to or from a non-resident.

Technology parks

Technology companies here mostly need valuations for seed and Series A rounds, ESOP grants and their accounting under Ind AS 102, and FEMA pricing when foreign investors come in.