SELL OF MY SHARES

Querist : Anonymous (Querist) 26 April 2010 This query is : Resolved
DEAR SIRS, I'M ITALIAN AND I'M A 20% SHARE HOLDER OF AN INDIAN COMPANY.
RIGHT NOW I WOULD LIKE TO SELL MY SHARES TO MY PARTNERS, AND THEY AGREED TO BUY THEM.
HOW WE SHOULD CALCULATE THE REAL VALUE OF MY SHARES ?
THANK YOU FOR YOUR PROMPT REPLY
PETER

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Manish Singh (Expert) 26 April 2010
if its not a listed company then you will have to calculate it as per the rules of erstwhile controller of capital issues.

A V Vishal (Expert) 26 April 2010
There are two ways companies determine the buyback price.

They use the average closing price (which is a weighted average for volume) for a period immediately before to the buyback announcement. Based on the trend and value a buyback price is decided

In the 2nd, shareholders are invited to sell some or all of their shares within a set price range. The low point of the range is at a discount to the market price, while the top of the price range is set at a premium to the market price. Investors are given more say in the buyback price than in the above arrangement. Still this method is rarely used. Generally, the price is fixed at a mark up over and above the average price of the last 12-18 months.

CA Adarsh Agrawal (Expert) 30 April 2010
There are lots of method of Valuation of Shares ! choice is urs !
u r transferring the controlling interest, so u should follow BOOK VALUE METHOD or CAPITALISATION OF EPS METHOD or AVERAGE PRICE OF BOTH.

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