Private Placement Advisory – Trusted Advisory Services Tailored to You

Private Placements

Ascend Valuations provides its clients with valuation services for private placement which allow firms to raise capital directly with Qualified Institutional Buyers (QIBs) and Qualified Institutional Investors (QIIs). We specialize in a discreet, streamlined and completely compliant process that is specific to the needs of an institution.

What is Private Placement?

The process of offering securities directly to institutional investors rather than through a public offering to a broad audience is called a private placement method of raising capital. This method is more flexible, quicker and has less regulatory complexity. It suits well with companies that require a low profile and strategic sources of funds.

Why Work with Ascend Valuations?

We combine industry knowledge and sophisticated valuation techniques. Our high reputation in integrity and compliance makes us provide solutions that are in accordance with International and ICAI Valuation Standards.

Our Services

We provide valuation private placement support including:

Advisory and valuation services for companies planning share buybacks, ensuring compliance with legal and regulatory frameworks.

Guidance on adhering to SEBI regulations, the Companies Act, and other statutory requirements to ensure a smooth and compliant process.

Preparation of all necessary legal documents, agreements, and detailed reports for transparency and record-keeping.

Why Choose Ascend Valuations?

Choosing Ascend Valuations means partnering with a trusted advisor who prioritizes your success. Here’s what sets us apart:

Expertise in Valuations & Compliance - We have a strong financial knowledge supported by International and ICAI Standards of Valuations.
Discreet & Secure Process - Confidentiality is the core business of our services and there is no doubt that sensitive information shall be secured.
Tailored Strategies - Every deal is structured to meet your unique goals, timelines, and regulatory needs. We tailor our valuation services as per the requirement of each unique deal.
Tying up the loose ends - The trouble starts after the business valuation is done. We tie up all the loose ends in valuation like treatment of cash & marketable securities, cross holding, equity options etc.

FAQ

Frequently Asked Questions

Your Questions Answered

What is a private placement of shares in India?

Private placement is raising capital by offering securities to a maximum of 200 investors per class per financial year under Section 42 of the Companies Act, 2013. It is faster and more flexible than a public offering, making it ideal for startups and growing businesses.

Is a valuation report mandatory for private placement?

Yes. An IBBI-registered Registered Valuer’s report is mandatory before the Board resolution is passed. The issue price cannot be lower than the valuer’s determined price. For foreign investors, the report must not be older than 90 days from the date of allotment.

What is the difference between private placement and preferential allotment?

Private placement under Section 42 raises fresh capital from new investors. Preferential allotment under Section 62(1)(c) can include existing shareholders. Both require a Registered Valuer’s report to set the minimum issue price.

What key documents are needed for a private placement?

Required documents include a valuation report (before Board resolution), Form PAS-4 (offer letter), special resolution with 75% shareholder approval, Form MGT-14 within 30 days, and Form PAS-3 within 15 days of allotment. Foreign investors additionally require an FC-GPR filing with the RBI within 30 days.

Can a startup raise multiple rounds of private placement in one year?

Yes, but only after completing or withdrawing the previous offer. A company can issue up to 200 persons per class of security per financial year. Different classes of securities (e.g., equity vs. CCPS) can be issued simultaneously, each with its own 200-person limit.

How does Ascend Valuations help startups with private placement?

Ascend Valuations prepares a defensible pre-money valuation compliant with Income Tax Rule 11UA, FEMA requirements for foreign investors, and Companies Act norms – ensuring the round is legally clean from term sheet to allotment.