Standardized approach to valuation of investment portfolio of Alternative Investment Funds (AIFs)
Overview In a significant move to enhance transparency and investor protection, the Securities and Exchange Board of India (SEBI) introduced a standardized approach to the valuation of investment portfolio of AIFs (Alternative Investment Funds). Originally notified via amendments to the AIF Regulations in June 2023, these guidelines became strictly enforceable as of November 01, 2023. […]
News Insight
16 September, 2023 What’s New at this Month: Fintech Unicorn Slice to Merge with North-East Small Finance Bank Tiger global-Funded Bizongo Raises $50mn In Series E Onsurity Raises $24 Mn In Series B Led By IFC Saregama Acquires Peak Xv-backed Pocket Aces Zerodha Values itself at $3.6 Bn, More Than Upstox and Groww’s worth. CLICK […]
Liquidation Preference
The term refers to the certain privileges that a class of shares are provided over other classes of shares. As the name suggests, it provides a preference to a certain class of shares over other classes of shares. This is usually a standard term in shareholder agreements and the shares in later rounds are generally […]
“Provisions for Angel Tax” for startups under Income Tax Act
4th Oct, 2023 Angel tax is essentially the tax that unlisted companies are liable to pay on the capital they raise through issue of shares. Recently the government amended the rules for Startup Valuation and added 5 new methods of valuation. However, these methods cannot be used in all cases. These can be used only in case the investment […]
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 DREAM SPORTS ON DREAM RIDE TOWARDS DECACORN VALUATION Fantasy sport unicorn Dream Sports, the leading sports tech company with brands such as Dream11, Dream Capital, FanCode, DreamSetGo, Dream Game Studios, and […]
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 […]
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
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. When we talk about valuation of a company, the first things that […]