Registered Valuers and Merchant Banks: A Strategic Alliance

The Growing Importance of Valuation in Finance

Valuation firms play a central role in determining the fair value of companies, assets, and securities. Certified valuation helps maintain investor confidence while ensuring regulatory compliance. Merchant bankers provide advisory to structure deals efficiently, while IBBI-registered valuers provide independent financial assessments, increasing transparency in the market.

• Fair Value Assessment: Registered valuers ensure accurate valuation of assets and companies, assisting merchant bankers in structuring transactions properly.
• Regulatory Compliance: Certified valuation aligns financial reports with SEBI and IBBI standards, reducing legal and operational risks for transactions.while ensuring compliance.
• Informed Decision-Making: Valuation advisory provides reliable insights, allowing merchant bankers to recommend fair pricing for IPOs, mergers, and acquisitions.

Role of Registered Valuers with Merchant  Banking

Registered valuers, including IBBI-registered valuers, are critical in providing valuation services along with merchant banking. Certified valuation reports guide pricing decisions, regulatory compliance, and deal structuring. This collaboration enhances credibility, protects investor interests, and ensures the transparent execution of corporate financial activities.

• Independent Assessment: Registered valuers provide impartial evaluations, ensuring merchant bankers receive unbiased financial information for capital raising and transactions.
• Certified Valuation: Certified valuers maintain professional standards, ensuring authenticity in valuation reports.
• Risk Mitigation: Accurate valuation minimises mispricing and conflicts, helping merchant bankers manage investor and regulatory risks.

Category 1 Merchant Bank and Valuation Needs

A Category 1 merchant bank is authorised for IPOs, rights issues, and placements. Reliable valuation services are essential for determining accurate pricing and meeting investor expectations. Certified valuers and valuation firms bridge the gap between merchant banker expertise and transparent financial reporting.

• Accurate Pricing: Certified valuation ensures correct pricing of securities, helping merchant bankers maintain market credibility.
• Investor Confidence: Valuation advisory improves trust, assuring investors that transactions reflect true market value.
• Regulatory Alignment: IBBI-registered valuers help merchant bankers comply with SEBI and other regulatory guidelines.

Strategic Alliance: Why It Matters

The partnership between registered valuers and merchant bankers is strategic, improving governance, transparency, and investor protection. Certified valuation, combined with merchant banking expertise, ensures professional and compliant corporate financial operations, strengthening India’s capital market integrity.

• Enhanced Governance: Collaboration ensures corporate finance decisions are transparent and compliant.
• Investor Protection: Certified valuation protects investors from mispricing and inaccurate financial information.
• Professional Credibility: Merchant bankers benefit from the expertise of valuation firms, enhancing trust in the market and supporting fair transactions.

Future of Collaboration

As markets evolve, the synergy between valuation firms, registered valuers, and Category I merchant banks will deepen. Certified valuation and valuation advisory will increasingly integrate technology to handle complex deals, improving efficiency, transparency, and trust in India’s capital markets.

• Technological Integration: Digital tools improve certified valuation accuracy, supporting merchant bankers in complex transactions.
• Global Readiness: Valuation advisory ensures compliance with international standards, attracting foreign investors.
• Market Efficiency: Collaboration improves transparency, accelerates transactions, and strengthens confidence in India’s financial ecosystem.

Conclusion

Registered valuers and merchant bankers form a strategic alliance in corporate finance. Certified valuation, backed by IBBI-registered valuers and valuation firms, ensures transparency, strong governance, and investor trust — making valuation advisory an integral pillar of India’s capital markets.