Valuation of unlisted equity shares: mandated discounted net worth and capitalised earnings method, plus due diligence and reporting. Unlisted equity shares must be valued in good faith by taking the lower of two net worth-per-share measures (basic and diluted for warrants/options) and a capitalised-earnings value based on 25% of industry average P/E applied to audited EPS; the mean of these two values is then discounted by 15% for illiquidity. Valuation relies on audited accounts, is zero where accounts are over nine months old or net worth is negative, treats negative EPS as zero, requires an independent valuer if a security exceeds 5% of scheme assets, permits trustee-approved additional markdowns, and bars purchases above the methodology-derived price except for compliant IPO/firm allotments.
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Provisions expressly mentioned in the judgment/order text.
Valuation of unlisted equity shares: mandated discounted net worth and capitalised earnings method, plus due diligence and reporting.
Unlisted equity shares must be valued in good faith by taking the lower of two net worth-per-share measures (basic and diluted for warrants/options) and a capitalised-earnings value based on 25% of industry average P/E applied to audited EPS; the mean of these two values is then discounted by 15% for illiquidity. Valuation relies on audited accounts, is zero where accounts are over nine months old or net worth is negative, treats negative EPS as zero, requires an independent valuer if a security exceeds 5% of scheme assets, permits trustee-approved additional markdowns, and bars purchases above the methodology-derived price except for compliant IPO/firm allotments.
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