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TMI BlogInvestment in Unlisted Equity SharesX X X X Extracts X X X X X X X X Extracts X X X X ..... ear Sirs, Investment in Unlisted Equity Shares With a view to bringing about uniformity in calculation of NAVs of mutual funds schemes, the following guidelines are being issued for valuation of unlisted equity shares in consultation with Association of Mutual Funds in India (AMFI). The guidelines also prescribe exercise of due diligence while making such investments and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [share capital plus consideration on exercise of Option/Warrants received/receivable by the Company plus free reserves(excluding revaluation reserves) minus Miscellaneous expenditure not written off or deferred revenue expenditure, intangible assets and accumulated losses] divided by {Number of Paid up Shares plus Number of Shares that would be obtained on conversion/exercise of Outstanding Warran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per share. The above methodology for valuation shall be subject to the following conditions: i. All calculations as aforesaid shall be based on audited accounts. ii. In case where the latest balance sheet of the company is not available within nine months from the close of the year, unless the accounting year is changed, the shares of such companies sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... using the aforesaid methodology. Due Diligence The mutual funds shall not make investment in unlisted equity shares at a price higher than the price obtained by using the aforesaid methodology. However, it is clarified that this will not be applicable for investment made in the initial public offers of the companies (IPOs) or firm allotment in public issues where all the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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