Valuation and Declaration of Solvency in Corporate Restructuring: Regulatory Framework, Methods and Practical Insights Introduction – Importance of Solvency in Restructuring Corporate restructuring—whether through mergers, demergers, capital reduction, or voluntary winding up—requires a foundational assurance: the company must be solvent. Solvency is not merely an accounting concept; it is a…

Valuation for Purchase of Minority Shareholding under Section 236 – Fair Pricing, Methodology and Compliance Introduction – Understanding Minority Squeeze-out In corporate structures, particularly closely held companies and private equity-backed entities, situations often arise where majority shareholders seek to consolidate ownership by acquiring the remaining minority stake. These transactions, commonly…

Valuation for Issue of Shares for Consideration Other Than Cash: Regulatory Framework, Methods and Practical Insights Introduction – Concept of Non-Cash Share Issuance In modern corporate structuring, issuing shares for consideration other than cash has become a widely used mechanism to facilitate acquisitions, restructuring, and strategic partnerships. Instead of cash…

Companies Act Perspective on ESOPs: Section 62(1)(b), Rules, Approvals, and Compliance Requirements Employee Stock Option Plans (ESOPs) have evolved into one of the most effective tools for aligning employee incentives with long-term shareholder value. Particularly for startups, growth-stage companies, and professional service firms, ESOPs serve as a strategic instrument for…

Valuation in Compromise, Arrangement, Merger and Amalgamation (Sections 230–232): A Practical Guide Role of Valuation in Corporate Restructuring Corporate restructuring transactions—whether mergers, amalgamations, or broader schemes of arrangement—are among the most critical strategic decisions undertaken by companies. Under the Companies Act, 2013, Sections 230 to 232 provide the legal framework…

Valuation for Private Placement and Preferential Issue under Companies Act, 2013 (Sections 42 & 62): Pricing, Compliance and Practical Insights Why Valuation Matters in Capital Raising In today’s capital-driven business environment, valuation plays a central role in determining how companies raise funds, dilute ownership, and attract investors. Whether it is…

Valuation under Companies Act, 2013: Section-wise Guide for Corporate Transactions and Compliance Introduction – Importance of Valuation under Companies Act Valuation plays a central role in modern corporate decision-making, especially in transactions involving capital restructuring, mergers, investor entry, or exit mechanisms. Under the Companies Act, 2013, valuation under Companies Act…

Acqui-hire Valuation in India – Valuation Approaches and Structuring Considerations Acqui-hire transactions require a significant departure from traditional valuation models. Unlike conventional acquisitions, where value is driven by financial performance, assets, or intellectual property, acqui-hire deals are centered around human capital and future strategic potential. Given the absence of stable…