Valuation Newsletter

Valuation Newsletter covers important valuation news regarding fund raise, M&A or valuation along with our insights on the news. Our Coverage in this edition 1.    Droom Technology files DRHP, to raise Rs 3000 crore from IPO 2.    Policybazaar scrip gains 22.74 pc on day one of listing 3.    Sigachi Industries stock makes bumper debut, zooms […]

ESOP vs Sweat Equity Shares – An Analysis

Many startups and private companies struggle to decide whether they should issue ESOPs or Sweat Equity Shares to their key employees and directors. Here we try to analyze the pros and cons and compare the requirements and eligibility for both the options for the startups.

Valuation Drivers

Valuation of a business enterprise reflects the expectation on future potential and performance of the business. Valuation Drivers are factors which significantly affect the value of the business enterprise. There are many factors affecting the value of the business including both qualitative and quantitative factors. Many of these factors may not be controllable at enterprise […]

Reviving the Indian Economy

The past one and half year has brought down-slide in the Indian Economy, starting from the fallout of IL&FS scam till the strict nation-wide lockdown norms being imposed in view of COVID-19. In this report, we collate and review the facts and figures regarding the Indian Economy pertaining to the aforesaid period and suggest certain […]

ESOP – An effective tool for Employee Compensation

Employee Stock Ownership Plan (“ESOP”) are one of the prominent instruments used in the corporate and start-up world to attract, retain and motivate the high skilled and talented personnel of the business. ESOP motivates the employees to drive the performance of the organization, resulting in maximization of shareholder’s value and thereby align the employees’ interest […]

Impact of Covid 19 on Valuation

Since February 2020, the world has been facing unprecedented crises due to the spread of Covid 19 pendamic and the subsequent lockdowns imposed by various governments.  This has caused massive disruptions in the normal business activity and has led to restrictions on the movement of people. This was followed by crash in the stock markets […]

“Angel Tax” – Decoding Income Tax Provisions

[vc_row][vc_column][vc_column_text]Many #startups still grapple with the various nuances of the provision of Income Tax Act (Section 56(2) (viib) to tax the excess premium amount received by the startup over the Fair Market Value of shares. In Feb 2019, the Indian Government came out with a notification on exempting eligible #startups from the provisions of the section. In the […]

Valuation of Start ups

[vc_row][vc_column width=”1/2″][vc_single_image image=”2044″ img_size=”full”][/vc_column][vc_column width=”1/2″][vc_single_image image=”2043″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text] Valuation of Start ups Prateek Mittal For a start-up looking to raise seed capital, there is always a question of how much to value your business and how much stake to dilute. In this article, we will try to analyse the various means to value a start-up.   […]