VALUATION OF PRIVATE LIMITED COMPANY SHARES

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Govind Prajapati

Govind Prajapati (Querist)
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20 July 2026 HOW TO VALUE PRIVATE LIMITED COMPANY SHARES

Aashok Kumar Sharma online

Aashok Kumar Sharma

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21 July 2026 To value Private Limited Company shares, you must first identify the purpose of the valuation, as this dictates the legal framework. For transferring existing shares, the Adjusted Net Asset Value (NAV) method under Income Tax Rule 11UA is used and can be certified by a CA. For issuing new shares, particularly at a premium or to foreign investors, methods like Discounted Cash Flow (DCF) are required, and the report must be certified by an IBBI Registered Valuer or a Merchant Banker. Choose the valuer and method based strictly on the transaction type.

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