Prostarm Clarifies Valuation Methodology for Preferential Issue
Prostarm Info Systems Limited clarified that the fair value of equity shares for its preferential issue, set at ₹145.78 per share, was determined solely by the Market Approach (Market Price Method). Previous mentions of Cost and Income approaches in AGM notices were inadvertent errors.
This is a procedural clarification regarding valuation methodology for a preferential issue and is unlikely to have a significant impact on the company's stock price or business operations.
The announcement is a clarification of a previously disclosed methodology and does not introduce new positive or negative financial information.
Prostarm Info Systems Limited has issued a clarification to the National Stock Exchange of India (NSE) regarding the valuation methodology used for its preferential issue. The company clarified that the fair value of the equity shares, determined at ₹145.78 per share, was based solely on the Market Approach (Market Price Method), as stated in the Valuation Report by the Registered Valuer.
Previously, the notice for the Annual General Meeting (AGM) and its corrigendum had inadvertently mentioned the consideration of Cost Approach (Net Asset Value Method) and Income Approach (DCF Method) in addition to the Market Approach. Prostarm has now confirmed that these references were an error and the valuation was exclusively conducted using the Market Approach.
This clarification aims to ensure the accurate recording of the valuation methodology by the stock exchanges for the preferential issue. The company has requested that this clarification be taken on record and will also be available on its website, www.prostarm.com.
What to do with a filing like this
Prostarm Info Systems Limited filed this with the NSE as a statutory disclosure, categorised under preferential allotment. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Prostarm Info Systems Limited. Read the original for the full detail.