valuation

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shraddha (Querist)
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20 July 2010 Dear All,
A company wants to go for IPO. for this purpose i have been assigned to find out the prospective issue price of the shares of the company. Can anyone please suggest me on the following matters:

1. all the applicable methods to value and arive at the share issue price.

2. which methods are mostly used for valuation in such cases?

3. what is the most reliable method?

4. any other information that can help me in carrying out the assignment?

If possible please mail me the details in my mail id i.e. shraddha333@gmail.com.

Your expert suggestions are very valuable to me.
Thanking you,
CS Shraddha Mishra.

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)
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20 July 2010 In general there are various methods for valuation which is applicable based on
a) what industry the company is part of
b) what is the operational or growth stage of the company
c)what are the seasonal factors or other factors in relation to Company that may be used for adjustment to the valuation.

I would just searching through the web for th e various methodologies and its appropriateness. Please also look at the regulation requirement regarding the valuation.

For example, For the purpose of valuation of shares RBI has specified DCF methodology under the Foreign Exchange Management Regulation amendments