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Table of contents
- Accurate, Compliant and Defensible Valuations under the Insolvency & Bankruptcy Code, 2016
- Understanding IBC Valuations
- When IBC Valuation Is Required ?
- Methodologies for IBC Valuations
- Want to get IBC Valuation report an from IBBI Registered Valuer ?
- Role of Valuation in CIRP and Liquidation
- Documents Required for IBC Valuation
- Why IBC Valuation Matters ?
- How Equirium Analytics Adds Value ?
- Why Choose Equirium Analytics ?
Accurate, Compliant and Defensible Valuations under the Insolvency & Bankruptcy Code, 2016
Valuation under the Insolvency & Bankruptcy Code (IBC), 2016 plays a critical role in the Corporate Insolvency Resolution Process (CIRP), liquidation proceedings, and stakeholder decision-making. The objective of an IBC valuation is to determine the fair and liquidation value of the corporate debtor so that lenders, resolution applicants, and the Committee of Creditors (CoC) can make informed decisions regarding revival or liquidation.
At Equirium Analytics, we deliver IBC-compliant valuation reports prepared by IBBI-Registered Valuers for Securities & Financial Assets. Our valuations follow IBBI Valuation Standards, IBC regulations, CIRP guidelines, and industry best practices.
Understanding IBC Valuations
IBC mandates that the Resolution Professional (RP), with the approval of CoC, must appoint two Registered Valuers to determine:
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Fair Value:
The estimated realizable value of assets if the corporate debtor continues as a going concern. -
Liquidation Value:
The estimated realizable value of assets if the corporate debtor were liquidated on the valuation date.
These values form the basis for evaluating:
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Resolution plans
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Bid submissions
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Haircut decisions
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CoC voting
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Liquidation feasibility
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Distribution of proceeds
A reliable IBC valuation ensures transparency, protects creditor interests, and supports the revival or closure of stressed entities.
When IBC Valuation Is Required ?
Valuations under IBC are mandatory in the following processes:
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Corporate Insolvency Resolution Process (CIRP)
Determining fair value and liquidation value during CIRP. -
Liquidation Proceedings
Asset valuation for liquidation sale, slump sale, secured creditor realization, or auction basis. -
Resolution Plan Evaluation
Comparing resolution plan offers against fair and liquidation values. -
Avoidance Transactions
Valuations required for preferential, undervalued, extortionate credit, or fraudulent transactions. -
Fresh Bids / Re-Bidding
When CoC requires updated valuations due to material business changes. -
Going Concern Sale during Liquidation
Determining value for sale of business or undertaking.
A defensible IBC valuation is crucial because it often influences the strategic direction of the distressed company.
Methodologies for IBC Valuations
Valuations under IBC are mandatory in the following processes:
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Corporate Insolvency Resolution Process (CIRP)
Determining fair value and liquidation value during CIRP. -
Liquidation Proceedings
Asset valuation for liquidation sale, slump sale, secured creditor realization, or auction basis. -
Resolution Plan Evaluation
Comparing resolution plan offers against fair and liquidation values. -
Avoidance Transactions
Valuations required for preferential, undervalued, extortionate credit, or fraudulent transactions. -
Fresh Bids / Re-Bidding
When CoC requires updated valuations due to material business changes. -
Going Concern Sale during Liquidation
Determining value for sale of business or undertaking.
A defensible IBC valuation is crucial because it often influences the strategic direction of the distressed company.
Want to get IBC Valuation report an from IBBI Registered Valuer ?
Role of Valuation in CIRP and Liquidation
Valuation is essential for:
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Establishing the value benchmark for resolution plan evaluation
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Deciding haircuts and recovery estimates
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Facilitating negotiations with potential resolution applicants
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Assessing viability of business as going concern
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Determining liquidation reserve prices
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Allocating proceeds among stakeholders
IBC valuation reports are used by RPs, CoC members, NCLT, auditors, and resolution applicants for decision-making and regulatory submissions.
Documents Required for IBC Valuation
Typically, we require:
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Latest audited and unaudited financial statements
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Asset registers, fixed asset schedules, and depreciation details
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Management accounts, operational metrics, and cash flow status
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Information Memorandum (as per IBC regulations)
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Inventory details, receivables ageing, and payable ageing
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Loan agreements, security documents, and charge details
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Details of ongoing litigations and contingent liabilities
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Any CIRP-related documents prepared by RP
We coordinate closely with the RP and CoC to gather and verify all data.
Why IBC Valuation Matters ?
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Ensures fair and transparent insolvency resolution
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Protects lenders’ and creditors’ interests
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Forms the benchmark for evaluating resolution plan proposals
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Reduces legal risk and potential disputes in CIRP
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Assists NCLT in case of objections or challenges
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Maintains regulatory compliance throughout insolvency proceedings
A well-prepared valuation increases the confidence of CoC and resolution applicants and provides clarity to NCLT.
How Equirium Analytics Adds Value ?
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At Equirium Analytics, we ensure accuracy, independence and regulatory compliance in every IBC valuation assignment.
Our Expertise Includes:
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Registered Valuers specializing in Securities & Financial Assets
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Valuations aligned with IBC Regulations and IBBI Valuation Standards
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Deep understanding of stressed assets, insolvency frameworks and business viability
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Transparent structure, clear assumptions and defensible methodologies
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Assistance during RP and CoC discussions and audit clarifications
We support resolution professionals, financial creditors, and legal advisors with comprehensive, reliable valuation insights.
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Why Choose Equirium Analytics ?
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IBBI Registered Valuers with insolvency-sector experience
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Robust modelling and multi-approach valuation analysis
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Clear reports that withstand NCLT and audit scrutiny
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Fast turnaround suitable for CIRP timelines
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End-to-end support for RP, CoC, and legal teams
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