India Control Premium Study 2023

Authored by: CA Punit Khandelwal, CA Sunit Khandelwal and Prof. Divya Aggarwal of EMLV, France (ex-professor IIM, Ranchi, India)

Assisted by: CA Gargi Gupta and Arnav Tyagi



The fifth edition of Incwert’s India Control Premium Study, 2023 is an update to the previous year’s study. The study analyses 20+ years (March 2002 to June 2023) of premium offered in takeovers in public transactions which triggered open offer obligations on the acquirers.

A Control Premium is the additional consideration that an investor would pay over a marketable minority equity value (i.e., current, publicly traded stock prices) to own a controlling interest in the common stock of a company. In the Indian context, our reference to the base price is anchored in the offer price guidelines as stipulated by the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations of 2011.

This paper is aimed at presenting an in-depth analysis of Control Premiums within the landscape of Indian company mergers and acquisitions, thoughtfully segregated by industry, time series, and various bases of premium calculation. It's important to note that the analysis and statistics provided herein are estimations. When assessing the premium for a specific company, one must consider the unique characteristics of potential market participants and the potential enhancements to cash flows and synergies available to them.

We invite you to explore this study as a valuable resource in understanding the intricacies of control premiums within the Indian market. The statistics reflect a wide range in the value of median/averages, which is a significant function of negotiation dynamics in a transaction.

We trust that you will find the outcomes of our study both engaging and valuable.