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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Holdco Discount-2022

By incwert | 18th February 2023

We are pleased to release the third edition of Incwert’s holding company discount (“HoldCo Discount”) study 2022, based on the analysis of select listed holding companies across major sectors in India.
We observe that the median HoldCo discount in FY22 is approximately 71 per cent across the major listed holding entities in India.

The median HoldCo discount expanded during the COVID-19 period due to the volatility spillovers in the market.

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Purchase Price Allocation (PPA) Study, India

By incwert | 30th January 2023

We are pleased to release the first edition of Incwert’s Purchase Price Allocation Study in India covering the financial years 2020, 2021 and 2022. We have compiled the study after analysing public filings for 124 completed transactions in FY2020, 75 completed transactions in FY2021 and 141 completed transactions in FY2022. We have summarised the results 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 2022

By incwert | 15th November 2022

Incwert Size Premium Study 2022 is a comprehensive study of past market data of the companies listed on the National Stock Exchange (NSE) of India from 1995 through December 2021 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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Purchase Price Allocation (“PPA”) study in the Banking and Insurance sector

By incwert | 30th July 2020
Posted in

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
Posted in

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
Posted in

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
Posted in

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.

Defaults, Admissions & Recoveries – Q2 2019 Flash

By incwert | 31st August 2019
Posted in

The progress and agility of IBC has been good versus older restructuring regimes in India, though the resolutions continue to be plagued with delayed closures. In this paper, we present a summary of defaults and recoveries up to second quarter of 2019.

Rule 11UA(1)(c)(b) Valuation Challenges and Our View

By incwert | 30th July 2019
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The Finance Act, 2017 inserted clause (x) in sub-section (2) of Section 56 of the Income-tax Act 1961 and new Section 50CA to deal with transaction involving without/inadequate consideration.
This paper attempts to address challenges faced when computing FMV of shares/securities under Rule 11UA(1)(c)(b)

Defaults, Admissions & Recoveries – Quarterly Flash

By incwert | 27th May 2019
Posted in

In this quarterly publication, we aim to present the insights on defaults and recoveries. Further, we have discussed the status of each of the 12 Big Accounts under the Insolvency Bankruptcy Code (IBC).

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