IBBI Registered Valuer Entity · All 3 Asset Classes
Valuation under the Insolvency and Bankruptcy Code (IBC) is mandatory when a company enters CIRP or liquidation to determine Fair Value and Liquidation Value as required under IBBI Regulations 27 & 35. Banks, Resolution Professionals, CoC members, and NCLT rely on these valuations to take binding financial decisions. Only IBBI-Registered Valuers are legally authorised to conduct IBC valuations.
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Who Needs IBC Valuation
Built for Every Stakeholder in the Insolvency Ecosystem
RNC Valuecon LLP has supported all sides of IBC proceedings from appointment as valuer by RPs to providing expert testimony before NCLT.
Insolvency Resolution Professionals (IRP / RP)
You need IBBI-registered valuers appointed within 7 days of your appointment. Both valuers must be independent, cover all asset classes, and submit compliant reports within the CIRP timeline.
Triggered: Immediately on RP appointment — Reg 27 timeline starts
Banks & Financial Creditors (CoC Members)
Fair value and liquidation value directly determine whether you vote for a resolution plan or liquidation. Accurate valuation protects your recovery position and justifies haircut decisions to regulators and auditors.
Triggered: Before CoC voting on resolution plans
NCLT Legal Counsel & Litigants
When a valuation is challenged before the tribunal, you need an expert valuer who can stand behind their methodology, assumptions, and report — and provide expert testimony if required.
Triggered: When resolution plan or valuation is challenged in NCLT
ARCs, PE Funds & Stressed Asset Investors
Before bidding in a CIRP or acquiring a distressed business, independent valuation gives you an accurate price anchor — protecting you from overpaying and structuring a defensible acquisition thesis.
Triggered: Before EOI submission or resolution plan filing
Corporate Debtors Entering CIRP
Understanding the fair and liquidation value of your assets before CIRP commences helps management, promoters, and legal teams frame realistic settlement proposals and assess revival feasibility.
Triggered: Pre-CIRP planning and OTS/settlement discussions
CFOs & Finance Heads (Voluntary Liquidation)
Before filing declaration of solvency under voluntary liquidation, valuation reports from IBBI-registered valuers are mandatory under Section 59(3)(b)(ii) of the IBC.
Triggered: Before filing declaration of solvency
When Valuation Is Required
IBC Scenarios That Mandate Professional Valuation
Each scenario has distinct regulatory requirements, timelines, and valuation objectives. RNC Valuecon LLP covers all of them.
CIRP · Reg 27 & 35
Corporate Insolvency Resolution Process (CIRP)
Fair Value and Liquidation Value of all assets must be determined. Two IBBI-registered valuers appointed independently. Average of their reports becomes the official value.
📄 Reg 27 (appointment) + Reg 35 (values) — IBBI CIRP Regs 2016
Liquidation · Reg 34 & 35
Liquidation Proceedings
Liquidation Proceedings
Liquidator appoints two registered valuers within 7 days of liquidation commencement. Asset-level valuations determine reserve price for auctions going-concern, slump sale, or piecemeal asset sale.
📄 Reg 34 & 35 — IBBI (Liquidation Process) Regulations 2016
Avoidance · Sec 43–50
Avoidance Transaction Valuation
Avoidance Transaction Valuation
When the RP investigates preferential, undervalued, extortionate credit, or fraudulent transactions, valuation establishes “fair price” for historic transactions to determine if they constitute undervalue transactions.
📄 Sections 43, 45, 49, 50 IBC 2016 (as amended 2026)
Going Concern
Going Concern Sale During Liquidation
Going Concern Sale During Liquidation
When the liquidator proposes selling the entire business (or an undertaking) as a going concern rather than piecemeal, a separate going-concern valuation is required to establish a realistic reserve price.
📄 Schedule I, IBBI (Liquidation Process) Regulations 2016
Re-Bidding · CoC Directed
Fresh Bids / Re-Bidding Valuations
Fresh Bids / Re-Bidding Valuations
When material changes occur during CIRP — significant market shift, major asset deterioration, or extended CIRP timeline — the CoC may direct updated valuations before re-inviting resolution plans.
📄 CoC resolution — typically post-12-month CIRP extension
Voluntary · Sec 59
Voluntary Liquidation
Voluntary Liquidation
Before the declaration of solvency is filed, valuation reports from registered valuers confirm the company can pay its debts. Mandatory for solvent companies choosing to wind up voluntarily.
📄 Section 59(3)(b)(ii) IBC 2016 — pre-filing requirement
Regulatory Framework
Governing Laws & Regulations - Updated 2026
RNC Valuecon LLP valuers stay current with every regulatory update. Here is the complete framework governing IBC valuations.
⚖️ Primary Legislation
- IBC, 2016 — Sec 25(2)(b): Valuation mandate in CIRP
- IBC Amendment Act 2026 — Formal definition of “registered valuer” under Sec 3(27A)
- CIIRP provisions — New Chapter IVA — fresh valuation framework
📋 IBBI Regulations
- Reg 27: Two valuers appointed within 7 days of RP appointment
- Reg 35: Fair + Liquidation value determination; third valuer if >25% variance
- CIRP Amendment Regs 2026: New fair value definition — “arm’s length, after proper marketing, without compulsion”
🌐 Valuation Standards – April 2026 Update
- IBBI Circular — April 1, 2026: IVS (International Valuation Standards) mandatory for all IBC valuations
- Companies (RV) Rules 2017: Qualification and registration of valuers
- IBBI Discussion Paper Nov 2025: Coordinator-valuer model, standardised formats incoming
🏦 RNC’s Compliance Position
- Registered Valuer Entity(Registration Number: IBBI/RV-E/02/2020/123) — all 3 asset classes (Plant & Machinery, Land & Building, Securities)
- IVS-compliant reports from April 2026 circular
- Methodology disclosure to CoC per 2024-25 IBBI amendments
Breaking Update
IBBI Makes International Valuation Standards (IVS) Mandatory for All IBC Valuations
Effective April 1, 2026: All valuation reports submitted in IBC proceedings must comply with IVS — issued by the IVSC — replacing the previous dual-standards approach. RNC reports are IVS-compliant from Day 1.
How RNC Valuecon LLP Conducts IBC Valuation - Step by Step
Structured, time-bound, and IBBI-compliant — aligned with the 40-50 day submission window.
Why RNC Valuecon
What Makes Our IBC Valuations Defensible Under Scrutiny
Any valuer can submit a report. RNC Valuecon LLP reports are built to withstand CoC review, NCLT challenge, and IBBI audit.
Single Window — All 3 Asset Classes
RNC is a Registered Valuer Entity (RVE) for Plant & Machinery, Land & Building, AND Securities & Financial Assets. No need to coordinate multiple valuation firms — one appointment covers everything.
Dual Valuer with Documented Independence
Where applicable, we ensure strict independence between valuers — no shared assumptions, separate physical visits, independent reports. This eliminates the 25% variance risk that triggers costly third-valuer appointments.
Assumption-Level Documentation
Every assumption — market growth rate, discount rate, comparable selection, depreciation curve — is explicitly justified. Per 2024-25 IBBI amendments, methodology must be disclosed to CoC. RNC’s reports are built for this level of scrutiny.
Sensitivity Analysis Included
Every report includes scenario modelling showing how Fair Value and Liquidation Value change under key assumption variations. This builds creditor confidence and reduces bid disputes in CoC meetings.
PAN-India Presence – Fast Mobilisation
Teams based in Mumbai, Delhi, Ahmedabad, Gurugram. Site verification mobilised within 48-72 hours of assignment. We understand that CIRP timelines cannot wait for valuer logistics.
Post-Submission Objection Support
When resolution applicants, creditors, or tribunals raise objections to valuation reports, our team provides detailed written responses and expert witness support — protecting the integrity of the CIRP process.
Credentials
Reliance Communications Limited
Valuation of all classes of assets for resolution of debt of over INR 31,104 crores.
IVRCL Limited
Valuation of all classes of assets comprising EPC, Real Estate, Infrastructure businesses across India.
Videocon Group
Valuation for resolution of group insolvency of 13 Videocon Group Companies, having a total debt of Approximate INR 27,563 Crores.
Housing Development and Infrastructure Limited
Valuation of the Real Estate Conglomerate having over 42 Real Estate projects and properties.
ABG Shipyard Limited
Part of RBI’s list of 12 large accounts identified for Insolvency resolution / In the list of large 12 NPA accounts identified by RBI for Insolvency Resolution
Uttam Galva Steel Ltd. Uttam Galva Metallics Ltd and Uttam Value Steel
Valuation of Steel plants having an approximate total debt of INR 11,000 Crores.
Core Concepts
Fair Value vs Liquidation Value - Why Both Matter
Going Concern
The Best-Case Scenario
Estimated realisable value if assets/business were sold in an orderly, arm’s-length transaction between willing parties — after proper marketing and without compulsion.
2026 update: IBBI CIRP Amendment Regs 2026 redefined Fair Value to emphasize “estimated realisable” (not aspirational) value — grounded in achievable market outcomes.
Primary use: CoC evaluation of resolution plans. Any resolution plan must offer creditors MORE than Fair Value to be considered competitive.
Liquidation Value
The Floor / Downside Benchmark
Estimated proceeds from selling assets separately in a distressed, time-constrained scenario — the “worst-case recovery” if no resolution plan is approved.
Bank use: Lenders benchmark resolution plan haircuts against Liquidation Value to justify write-offs to RBI auditors and boards.
Primary use: Sets the minimum floor. The CoC cannot approve any resolution plan that offers creditors LESS than Liquidation Value. Protects creditor recovery rights.
Frequently Asked Questions
IBC Valuation - Everything You Need to Know
Answers designed for RPs, banks, legal teams, and investors navigating insolvency proceedings.
How is liquidation value calculated under IBC?
Liquidation Value under IBC is calculated as the Forced Sale Value of Assets minus Priority Liabilities. The forced sale value is always lower than fair market value — typically a 20-50% discount depending on asset type, condition, and marketability. Specialised or geographically remote assets generally see liquidation discounts at the higher end of this range.
What is the difference between Fair Value and Liquidation Value in IBC?
Fair Value represents the asset’s worth in an orderly transaction, often as a going concern, and is typically calculated using DCF or EV/EBITDA multiples for operating businesses. Liquidation Value represents what assets would realise in a forced sale, calculated using the asset or cost approach with forced-sale discounts applied. The gap between the two is often largest for sectors like telecom, where licenses are non-transferable in liquidation, sharply reducing realisable value.
How long does a valuation take in a CIRP proceeding?
A standard CIRP valuation takes approximately 40-50 days from engagement to report submission. This covers NDA and scope confirmation (days 1-2), data room review (days 3-10), physical site verification across all locations (days 7-25), valuation modelling and sensitivity analysis (days 15-35), IVS-compliant report preparation (days 30-45), and formal submission (days 40-50).
Why does IBC valuation require sensitivity analysis?
Under post-2026 IVS requirements, every IBC valuation report must include scenario modelling showing how Fair Value and Liquidation Value change under key assumption variations, rather than presenting a single fixed number. This gives the Committee of Creditors a range and confidence interval around the valuation conclusion, rather than one figure that could be challenged for relying on a single set of assumptions.
Which valuation method applies to real estate companies in CIRP?
For real estate companies in CIRP, the primary method for Fair Value is Net Asset Value — covering land, completed inventory, and under-construction projects. For Liquidation Value, a market comparable approach with a forced-sale discount is applied. A 2026-specific complexity is that real estate CIRP cases increasingly involve homebuyer creditors, whose claims are treated as financial creditors and must be factored into the asset-pricing waterfall.
Get Started Today
Whether you are a Resolution Professional with a 7-day mandate, a bank evaluating recovery positions, or an investor pricing a stressed asset — RNC delivers court-defensible IBC valuations on time.
– IBBI Registered for all 3 asset classes — single window engagement
– IVS-compliant reports per April 2026 IBBI circular
– NCLT objection support included — reports built to be challenged
– PAN-India site verification — mobilise within 48-72 hours
Request a Compliant Valuation Proposal
CIRP cases responded to within 4 business hours.