InvestorQ : What does it mean when SEBI says that all preferential allotment must have prior valuation?
Dhwani Mehta made post

What does it mean when SEBI says that all preferential allotment must have prior valuation?

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Dilmini Mercia answered.
5 months ago
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SEBI has informed the Securities Appellate Tribunal or SAT that all listed companies need mandatory prior valuation before raising capital through preferential equity allotment. This was in the context of the Rs.4,000 crore fund raising by PNB Housing from Carlyle. The deal had been objected by proxy firms as being unfair. While SAT reserved its order, SEBI was categorical that irrespective of the AOA, independent valuation report was essential. The valuation price must be better than the SEBI ordained ICDR formula.

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