NAV (CA-issued)
Quick, low-cost route for asset-heavy or early-stage companies.
- Balance sheet-based valuation
- Issued by a Chartered Accountant
- Best for asset-heavy entities
Rule 11UA Valuation
Rule 11UA valuation - the floor under every premium issue.
Rule 11UA of the Income Tax Rules prescribes the methodology for fair market value of unquoted equity shares. Required for every share allotment to justify the issue price and avoid Section 56(2)(viib) angel-tax exposure.
Qualified CA / CS partners5-10 working daysBest for: Startups raising rounds at a premium
Starting at
₹14,999 onwards
Rule 11UA Valuation
Startups raising rounds at a premium
Merchant-banker or CA route
NAV / DCF / multiples methods
Pre-money + post-money model
Section 56(2)(viib) defence pack
Timeline
5-10 working days
What it is
Rule 11UA Valuation, explained in plain English.
Rule 11UA(2) provides two routes for valuing unquoted equity shares: (a) Net Asset Value (NAV) - balance-sheet based, (b) Discounted Cash Flow (DCF) - by a merchant banker. Choice of method, scenario assumptions and supporting workings determine the FMV that justifies the issue price.
TL;DR
Issuing shares at premium? Get a Rule 11UA valuation report. DCF needs a merchant banker; NAV is CA-issued. Both stand up to assessment if documented properly.
Key terms
The vocabulary you'll see on the portal.
FMV
Fair market value computed per Rule 11UA - the floor for issue price.
NAV method
Net Asset Value of the company on the date of issue - balance-sheet based.
DCF method
Discounted cash flow valuation by a SEBI-registered merchant banker.
Routes & scenarios
Match the situation to the right fix.
DCF (merchant banker)
Required for high-growth startups with low NAV but strong future cash flows.
- 5-year cash-flow projection
- Terminal value + WACC
- Sensitivity analysis
The process
Rule 11UA Valuation - from kickoff to confirmation.
01
Data room
Latest financials, projections, cap table, investor term sheet and assumptions collected.
02
Method selection
NAV vs DCF chosen based on stage, business model and round size.
03
Valuation workings
Detailed workings, sensitivity and benchmarking; signed report drafted.
04
Defence pack
Notes for assessment with Section 56(2)(viib) angle, investor diligence Q&A and PAS-3 attachment.
Documents required
What we'll need from you.
Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.
Audited financials (last 2 years)
5-year projections (DCF)
Cap table + share issuance plan
Term sheet / investor offer
Industry benchmarks
Recent valuation reports (if any)
Rule 11UA Valuation FAQ
Common questions, answered by partners.
Still unsure if Rule 11UA Valuation is right for your case? Book a free 20-minute consult - a senior CA / CS will walk you through your specifics.
Still have questions?
Book a free 20-minute consult with a senior partner - we'll walk through your case and outline next steps.
Talk to a partner →No - DCF under Rule 11UA must be issued by a SEBI-registered merchant banker. CA can issue NAV but not DCF.
Ready when you are
Let's get your Rule 11UA Valuation sorted this week.
A senior CA / CS will get on a call with you, confirm scope and start the work - usually within 24 hours.