Role of a Category I Merchant Banker in Valuation

In today’s evolving financial ecosystem, merchant bankers play a pivotal role in navigating the complex valuation landscape. A key function of a Category I Merchant Banker is to provide certified valuation along with strategic financial advisory services. Their expertise enables businesses to unlock value, ensure compliance with regulatory norms, and prepare for fundraising, mergers, and IPOs with accuracy and efficiency.



Understanding the Category I Merchant Banker’s Mandate

Category I Merchant Bankers, registered with SEBI (Securities and Exchange Board of India), are authorised to manage issue-related activities like IPOs, FPOs, open offers, and most importantly, valuation advisory. These merchant banks also help in due diligence, restructuring, and capital market transactions, where precise business valuation is crucial.

Their scope isn’t just limited to transactional services. A Category I merchant bank also plays a very important role in:

●    Assisting companies in strategic decision-making

●    Ensuring regulatory compliance in valuations

●    Advising on mergers, acquisitions, and fundraising

●    Appointing or collaborating with registered valuers or IBBI-registered valuers

This multifaceted role makes them an essential pillar of the valuation services ecosystem.

Rising Demand for Trusted Valuation Firms

In a dynamic economy, the demand for experienced valuation firms has surged across sectors. Whether it is a startup raising capital, an MSME going for restructuring, or a large corporation aiming for an IPO, accurate valuation is the backbone. Merchant bankers are entrusted with coordinating or reviewing valuations to make sure they meet both investor and regulatory expectations.

In such cases, merchant bankers often work closely with certified valuers to ensure that assessments are detailed and credible.

Valuation Advisory Led by Merchant Bankers

Merchant bankers are at the centre of valuation advisory. They not only provide a number—they give the full context too. Whether the goal is to value shares for regulatory purposes, derive enterprise value for acquisition, or decide fair market value during buybacks, a category 1 merchant bank makes sure that the advisory is supported by proper data, industry insights, and appropriate financial modelling.

Such services become especially useful when valuation must be presented to boards, investors, or regulatory bodies.

Certified Valuation with Regulatory Edge

One critical part of any business valuation is to ensure that it stands up to the scrutiny by regulators and other stakeholders. This is where certified valuation matters. Category I merchant bankers either do or review valuations done by IBBI-registered valuers, so the certification is acceptable in legal and regulatory settings.

This certification isn't just a tick-box—it actually adds trust and transparency to the numbers that impact stakeholder decisions.

Merchant Bankers and Registered Valuers—A Strategic Alliance

While merchant bankers bring strong transaction experience and financial analysis, registered valuers give deep subject knowledge. Their collaborations ensure valuation results that are both accurate and defensible.

A Category I Merchant Banker works with IBBI-registered valuers to follow norms under SEBI, RBI, or the Companies Act—for fairness opinions, share allotments, or resolutions under IBC.

This ensures:

●    Alignment between valuation and strategy

●    Fast approvals in M&A or fundraising

●    Regulatory confidence in disclosures

Benefits of Engaging a Category I Merchant Banker for Valuation Services

There are many reasons why businesses go with Category I merchant banks for valuations:

●    Capital markets expertise helps match the quality of valuations with investor demand

●    SEBI registration gives strong credibility for IPOs and FPOs

●    Multi-disciplinary team combining finance, legal and compliance

●    Transaction readiness for investments or strategic exits

●    Coordination with certified valuers ensures accurate and compliant outcomes

So, whether you’re a startup or a large enterprise, these benefits ensure valuation is not just accurate but useful for strategy too.

How Resurgent India Can Help

If you're searching for a reliable valuation firm with a strong merchant banking background and industry knowledge, Resurgent India Limited is your trusted partner.

Being a Category I Merchant Banker, Resurgent India provides a full range of valuation services, including:

●    Business and equity valuations

●    Valuation for mergers, demergers, and acquisitions

●    Fairness opinions and share swap ratios

●    Certified valuation reports by IBBI-registered valuers

●    Transaction support and valuation advisory for fundraising or exit

Our expert team includes seasoned merchant bankers, registered valuers, and financial experts to deliver tailor-made valuation solutions that are defensible, accurate, and aligned to your goal.

For businesses looking for trust, compliance, and clarity in valuation, Resurgent India delivers the perfect mix of technical depth and strategic thinking. 

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