India Control Premium Study 2024

By incwert | 15th October 2024

The 6th edition of Incwert’s India Control Premium Study, 2023 is an update to the previous year’s study. The study analyses 22+ years (March 2002 to June 2024) of premium offered in takeovers in public transactions which triggered open offer obligations on the acquirers.

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Unravelling the tapestry of royalty rates, 2024

By incwert | 31st July 2024

Authored by: CA Punit Khandelwal, CA Sunit Khandelwal and Prof. Divya Aggarwal Professor, MDI Gurgaon (ex-professor: EMLV, France and IIM…

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Equity Risk Premium 2024

By incwert | 10th May 2024

We are pleased to issue the 6th edition of the India Equity Risk Premium (2024) study. Based on the current market conditions, we recommend India ERP of 7.25% (6.75% and 7.75% being the lower and upper limit of the range, respectively) beginning in April 2024.

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Holdco Discount-2023

By incwert | 15th March 2024

We are pleased to release the fourth edition of Incwert’s holding company discount (“HoldCo Discount”) study 2023, based on the analysis of select listed holding companies across major sectors in India.

We observe that the median HoldCo discount in FY23 is approximately 69 per cent across the major listed holding entities in India.

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Purchase Price Allocation (PPA) Study, India

By incwert | 1st January 2024

We are pleased to release the second edition of Incwert’s Purchase Price Allocation Study in India covering the financial years 2017 to 2023. This study is an extension of the first edition and builds on it by adding three years from the past (2017, 2018 and 2019) and the latest year (2023). We have compiled the study after analysing public filings for 930 completed transactions from FY2017 to FY2023. The results are summarised by the class of intangible, size of the transaction, rate of occurrence of intangibles within the industry, contingent consideration, select key transactions and useful life of the intangibles.

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India Size Premium Study 2023

By incwert | 29th November 2023

Incwert Size Premium Study 2023 is a comprehensive study of past market data of the companies listed on the National Stock Exchange (NSE) of India from 1995 through December 2022 to analyse the returns that mid-cap, small-cap and micro-cap stocks have generated over the return as predicted by capital asset pricing model (CAPM)

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India Control Premium Study 2023

By incwert | 30th August 2023

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.

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Unravelling the tapestry of royalty rates, 2023

By incwert | 30th July 2023

Unravelling the tapestry of royalty rates is our comprehensive study of intellectual property rates in India. In this study, we explore trends, challenges, and comparisons in the Indian royalty landscape over the last decade.

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India Equity Risk Premium 2023

By incwert | 28th May 2023

This is Incwert’s fifth edition of India Equity Risk Premium study. Based on the current market conditions, we recommend India ERP of 7.50% ( 7.00% and 8.00% being the upper and lower limit of the range, respectively) beginning April 2023

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Volatility Study 2023

By incwert | 27th March 2023

This is the third edition of Incwert’s Volatility Study, assessing the quantum of volatility in the asset prices differentiated by size based on the analysis of indices and listed companies in India.
We observe an increase in the volatility band for the micro enterprises to 65-70% compared to 60-65% during 2021. The volatility band of micro-enterprises may of significance for capturing the risk factors in privately held companies and start-ups.

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The Cross-Section of Volatility in Returns of Enterprises from Micro to Large Cap

By incwert | 14th January 2021
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Assessment of volatility in equity return of enterprises stratified by size

Equity with Differential Rights – how does it deal with the test of inadequate consideration within the Income-tax (rule 11UA)

By incwert | 30th September 2020
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With the idea of differential rights as to dividends, voting or otherwise picking-up in India pursuant to the introduction of section 43(a)(ii) of the Companies Act, 2013, can DVRs be a stratagem to emaciate the income tax (Rule 11UA) valuation?

India Control Premium Study, 2020

By incwert | 30th August 2020
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A study of control premium offered in takeovers in India based on public company transactions during 2002 to June 2020

Purchase Price Allocation (“PPA”) study in the Banking and Insurance sector

By incwert | 30th July 2020
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Aiming at readiness for the upcoming Ind AS implementation in the Banking and Insurance sector by drawing references from the US market

India Equity Risk Premium 2020

By incwert | 26th June 2020
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This is our second edition of Equity Risk Premium in India study. Based on the current market conditions, we recommend India ERP of 7.5% ( 7% and 8% being the upper and lower limit of the range, respectively) beginning April 2020.

Insight into Holdco Discount

By incwert | 1st March 2020
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Holdco Discount study could be of importance to the valuation professionals when dealing with the question on the quantum of discount to be applied for valuing the holding of a minority shareholder in an entity that is essentially an investment vehicle. The empirical evidence is based on market data which can be considered to be a reliable basis when addressing the holding in a private enterprise which is a conglomerate.

Risk-free rate dilemma for valuation in a negative yield economy

By incwert | 1st February 2020
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Are valuation principles antagonised by temporal dimensions of interfered risk-free rates in growth-deflated big economies? Read our article to understand how this blip could be adjusted using certain well accepted methods.

Cyclical Beta Study-India

By incwert | 1st January 2020
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Beta analysed across all major sectors in India in the past 20 years at quarterly intervals and mapped against business cycles to analyse mean reversion trends and suggested adjustments for computing Beta for business valuations

India Control Premium Study 2019

By incwert | 31st October 2019
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A study of control premium offered in takeovers in India based on public company transactions during 2002 to June 2019

AMCs in India – Listing & Valuation

By incwert | 30th September 2019
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In this paper, we have discussed an overview of asset management companies (AMCs), top AMCs in India, trends and events which led to a recent listing in India and methods to value such businesses along with current valuation and financial performance of Indian AMCs and a comparison with US-listed asset managers.

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