Pricing Formula for Preferential Issue by Unlisted Company

Hi All

Kindly quote with any justification what is the pricing formula  of the shares in case an unlisted company is issuing preference share / making preferential allotment?

 

Replies (9)
cci guidelines for valuation is a method which can be used . the file is in others section with the name "cci guidelines for valuation" in pdf format.

Abhishek

Though CCI Guidelines have now  been abolished , Is it feasible to still refer CCI guidelines.

 i AM SAYING , IT IS ONE OF THE METHODS. This is a problem in valuation of private ltd companies. we inour companies are getting it valued through Professional CA firms.

But the method will be book value or DCF (Discounted Cash flow method ) or if a peer company is listed , then its PE & EPS multiple.

dear friends,

Plese read the guidence issued by SEBI on the pricing formula.

Regards,

Ankit Kansal

U can also refer Sujal Shah's paper on Valuation - Using PECV, NAV n DCF methods....

Dear Leonel,

Comply with the provisions of Sec 81 regarding special resolution or Central Govt's approval as the case may be.

The shareholders while passing the special resolution may decide upon the price.

Normally only If the shares are issued to some outside parties based on some subscripttion agreement as a means of raising funds the Co's adopt some valuation methodology mutually agreed to between the parties. 

Also refer "Unlisted Public Companies (Preferential Allotment) Rules, 2003"

I want to know the pricing formula for preferential issue by unlisted company

Hello Friends,

My Co. is listed  in DSE.We are plannig to do Prefential Allotment .Can anyone  pl tell the detailed procedure  for the same . Also pl tell me , is there any time gap required for bringing IPO after making prefential Allotment or Co. can anytime after Prefential Allotment come up with IPO.

Thanks in advance

Regards

Preety

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