Business Valuation Services in India

Author: Devender Kumar Malhotra, Registered Valuer under the Companies Act, 2013 (IBBI/RV/05/2018/10424). Sapient Services Pvt. Ltd., Okhla, New Delhi. Last updated: October 2026.

A bank wants a valuation before it releases funds. An investor wants one before the term sheet is signed. A resolution professional has days to bring registered valuers on board. Sapient Services provides business valuation services in India from its office in Okhla, New Delhi, and we tell you at the start which rules apply and who must sign.

Request a free consultation:
+91 9540162888 or valuation@sapientservices.com.

What is a business valuation?

A business valuation is a reasoned estimate of what a company, or a stake in it, is worth on a stated date. The method and the conclusion depend on why the valuation is needed — a fundraising round, a merger, a tax filing and an insolvency case can each call for a different number for the same company.

Who needs business valuation services in India?

• Startups and founders raising a funding round
• Promoters and companies planning a merger, demerger or sale
• Resolution professionals running a corporate insolvency
• Companies issuing or transferring shares to foreign investors
• Companies granting ESOPs, sweat equity or a preferential allotment
• Companies preparing Ind AS accounts after an acquisition
• Shareholders in a valuation dispute, and lenders assessing stressed assets

If a bank, an investor, an auditor or a tribunal has asked you for a valuation report, you are likely in one of these cases, and the report has to be prepared for that specific purpose.

When Indian law requires a business valuation

Several laws ask for a valuation, and each names its own signatory. These are the common triggers.

Registration is by asset class: land and building, plant and machinery, or securities and financial assets — share and business valuations fall in the last class. Insolvency professionals have been able to appoint only registered valuers since 1 February 2019.

Our business valuation services in India

We value companies, LLPs and partnership firms, listed or unlisted, starting from the purpose of the report.

Enterprise and share valuation

For a sale, an investment or an internal decision, we value the whole business or a stake in it, with a financial model and scenario tests.

Startup and fundraising valuation

Founders raising money need numbers an investor can test. We tie projections to sector benchmarks and comparable rounds, and value CCPS and CCDs when a round uses them. Angel tax no longer applies to shares issued from 1 April 2025, but FEMA and Companies Act rules still call for valuation.

ESOP and sweat equity valuation

A sweat equity issue needs a registered valuer’s report. For ESOPs we value the shares at grant for accounting under Ind AS 102, and coordinate the separate merchant-banker certificate needed for the tax valuation at exercise.

Merger, demerger and restructuring valuation

For schemes under Sections 230 to 232 we prepare the valuation and the share exchange ratio, work that also supports demergers and group restructuring. Our merger and acquisition advisory page covers wider deal support.

FEMA valuation for foreign investment

Shares issued to a non-resident must be priced at or above fair value, and shares bought from one at or below it. The certificate comes from a chartered accountant, a SEBI merchant banker or a cost accountant, and must be no more than 90 days old on the deal date.

Insolvency valuation

In a corporate insolvency the resolution professional appoints two sets of registered valuers, one set if the debtor is an MSME unless the committee of creditors records reasons to appoint two. Since the February 2026 amendment, fair value treats the corporate debtor as a going concern, with synergies factored in rather than priced asset by asset. Our chartered engineers verify inventory and fixed assets on site. See insolvency valuation page and, for lenders, stressed asset valuation.

Ind AS, intangibles and financial reporting

Auditors ask for fair values under Ind AS 103, 36 and 113, with brands, patents and customer relationships valued separately. See intangible asset valuation and valuation for financial reporting.

How we choose the valuation method

No single method fits every business. We usually apply two or three and state which one is primary.

How the engagement works

1. Free initial consultation. We agree the purpose, the law involved, the scope and the fee.
2. Documents. Share 3 to 5 years of financials, MCA filings, the asset register and key contracts. Startups add projections and a cap table.
3. Analysis. Sector research, peer benchmarking and the financial model, with assumptions recorded and tested.
4. Draft review. You check the facts and we walk through the findings.
5. Final report. Signed report, summary letter and a methodology appendix.

Reports take 5 to 25 working days from complete documents, depending on the type.

Working across India

Our office is at S-15, Sapient House, Okhla Industrial Area, Phase II, New Delhi 110020. We have worked in Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and 15 countries. Share and financial reporting valuations are mostly remote; insolvency and asset-heavy work needs site visits. For a local page, see Delhi NCR, Mumbai, Bangalore or Hyderabad.

How to choose a business valuation firm in India

Ask for the valuer’s IBBI registration number and asset class, and check both on the IBBI register. A registered valuer’s report must state the purpose, any interest the valuer holds, the valuation date, the sources used and the procedure followed.

Business valuation cost and turnaround in India

Fees depend on the purpose, size and your deadline. These are Sapient’s indicative ranges, not fixed quotes.

You get a written quote after the free consultation, before any work starts.

Common valuation mistakes

• Using a valuer from the wrong asset class. A Companies Act or insolvency report signed by one can be rejected — check the class on the IBBI register first.
• Treating one report as valid for every purpose. A fundraising DCF cannot double as an insolvency filing, and a FEMA certificate needs a different set of professionals.
• Relying on one method. A single method is easy to challenge, so we reconcile two or three and record why.
• Starting late. Insolvency valuers must be appointed within 7 days of the resolution professional’s appointment and by the 47th day from commencement at the latest.

Frequently asked questions

Is an IBBI-registered valuer mandatory in India?

Yes for valuations the Companies Act and the insolvency code require, and the valuer must hold the right asset class. FEMA and ESOP valuations are different, needing a chartered accountant, SEBI merchant banker or cost accountant, depending on the purpose.

How much does a business valuation cost in India?

Sapient’s startup share valuations start at ₹30,000 and large M&A valuations from ₹2,00,000. The fee depends on scope, data quality and urgency, and we quote in writing first.

How long does a business valuation take?

Startups take 5 to 8 working days, mid-size companies 10 to 15, and large enterprises 15 to 25, from complete documents.

What documents do you need?

Three to five years of financials, MCA filings, the asset register, the shareholder agreement and key contracts. Startups add projections and a cap table. We send a checklist after the first call.

Do startups still need a valuation after angel tax was abolished?

Yes. Angel tax no longer applies to shares issued from 1 April 2025, but FEMA pricing, preferential allotments and investor talks still need one.

How is a startup with no revenue valued?

The valuer builds projections from sector benchmarks, compares recent rounds in similar companies and tests several scenarios, so every assumption is one an investor can check.

What is the difference between enterprise value and equity value?

Enterprise value is the value of the whole business before financing. Equity value is what belongs to shareholders after net debt.

What is the difference between fair value and liquidation value in insolvency?

Fair value is the estimated realisable value of the corporate debtor, or its assets, if exchanged between a willing buyer and seller on the insolvency commencement date, and since February 2026 it must factor in going-concern synergies, valuing the business as a whole. Liquidation value is the estimate if the company were liquidated on that date, and is typically lower.

Can a valuation report be used at the NCLT or in court?

A valuation report can be filed in NCLT or court proceedings. A registered valuer’s report carries more weight, and it should disclose the method and assumptions, but the tribunal or court decides how much weight to give it in that proceeding.

Who values ESOP shares for tax at exercise?

For an unlisted company, Rule 15(6) of the Income-tax Rules, 2026 (formerly Rule 3(8)) requires a Category I SEBI merchant banker’s certificate, dated not more than 180 days before the exercise date. A fresh certificate is needed if that window lapses.

Can you value businesses outside Delhi?

Yes. We are in Okhla, New Delhi, and work with clients across India — remotely for share and financial reporting valuations, and on site for insolvency and asset-heavy work.

Talk to a business valuation team that works across India

Sapient Services Pvt. Ltd. has worked from New Delhi since 1988, when D.K. Malhotra founded M/s Malhotra Associates. Tell us the purpose and the deadline, and we will say which report you need and what it will cost. Statutory deadlines are strict, so call early.