ESOP Valuations

Full spectrum valuations by our in-house experts. Built for Indian compliance.

Valuation is more than a figure, it underpins regulatory compliance, financial reporting, fundraising outcomes, and employee confidence. As a Category-I SEBI-registered merchant banker with a team of in-house registered valuer, Qapita delivers dependable, audit-ready valuations aligned with Indian regulations. Built for Indian startups, private companies, and listed entities,
our valuations support ESOP issuance, capital raises, buyback planning, and listings, ensuring regulator approval and investor confidence at every stage.

Talk to our Valuations Team

G2 Grid® for Equity Management Software | Summer 2025

Recognized as a Global Leader on G2

We are ranked the best in Customer Satisfaction, Enterprise and Mid-Market.

Why Indian companies choose Qapita for ESOP valuations

Designed for startups to listed companies

From early-stage startups to listed enterprises, Qapita delivers ESOP valuations aligned with Indian regulations. Our in-house Registered Valuer and Category-I SEBI-Registered Merchant Banker ensure every valuation meets ICAI, SEBI, Companies Act, and Income Tax requirements. Issue ESOPs, comply with audit standards, and stay regulator-ready with defensible, audit-grade valuation reports built for India’s evolving compliance landscape.

Ensure confidence across stakeholders

Qapita’s ESOP valuations are designed to stand up to auditor reviews, board scrutiny, and investor diligence. With transparent methodologies, well-documented assumptions, and regulator-accepted valuation models, companies gain clarity and credibility at every stage. Enable smoother audits, faster fundraising discussions, and confident decision-making backed by valuations that investors and authorities trust.

Seamless integration with cap tables and equity data

Qapita integrates ESOP valuations directly with your cap table and equity data to eliminate manual errors and inconsistencies. Model dilution accurately, reflect option pool changes correctly, and ensure valuation inputs stay aligned with real ownership structures. Get precise, up-to-date ESOP valuations without spreadsheets, reconciliations, or last-minute compliance risks.

How our ESOP valuations work for you

In-House Expertise. End-to-End Execution

Merchant banker + registered valuer = one trusted source

Qapita is one of the few equity platforms in India with a Cat-I Merchant Banking license and valuation capability under one roof. Our team works closely with your CFO, legal, and audit teams to deliver valuation reports that meet the standards of auditors, investors, ROC, and SEBI.

Valuation for ESOP Issuance & Reporting

Get it right from the first grant

We provide fair market value (FMV) assessments for ESOP grants, backed by valuation methodologies accepted under the Indian Income Tax Act and IND-AS 102. From grant pricing to expense amortization, you get defensible, documentation-ready reports, updated at your required frequency (annual/ semi-annually /quarterly).

Valuation for Exercise, Buybacks, Surrenders & Liquidity Events

Enable employee liquidity with compliant pricing

With Qapita, your cap table becomes a flexible decision-making tool. Visualize ownership by time, round, security class, or stakeholder – or backdate your view to past milestones and raise history. Share tailored dashboards with investors, legal counsel, or your finance team, all from the same source of truth. Equity data is powerful when it’s accurate, but it’s even more powerful when it’s presented your way.

Valuation for Preferential Allotment & Fundraising

Support every transaction with audit grade valuation

Qapita helps you look ahead by turning your cap table into a modeling engine. With every transaction, class, and term already structured, you can simulate new fundraises, exit scenarios, and conversion outcomes. Understand the impact of VC term sheets, SAFE note conversions, and liquidation preferences before you sign. No spreadsheets, just clarity, so you can make equity decisions with confidence.

Valuation for ESOP Accounting – Black Scholes (IND-AS 102)

Accounting aligned. Auditor approved.

We deliver valuation reports and amortization schedules compliant with IND-AS 102 for ESOP expense booking - including:

I. Black-Scholes
II. Binomial
III. Monte Carlo simulations

Our output is audit-ready and integrates seamlessly with your finance function.

409A Valuation (U.S. Companies or Employees)

Compliant valuations for global structures

If your company is incorporated in the U.S. or has U.S.-based employees receiving equity, we conduct 409A valuations using IRS-compliant models and safe harbor methodologies, ensuring global compliance and audit safety.

Testimonials

Words from our valued customers

They have extensive knowledge in this space. ESOP Direct guided us step by step through the entire process. We are particularly happy with their alacrity in responding to our queries!

Edward Tirtanata

CEO & Co-Founder, Kopi Kenangan

We are glad to have found a very competent consultant in ESOP Direct. A worthy partner to work with, is what I’d say.

Manhar Kapoor,

General Counsel & Company Secretary, Eicher Motors

ESOP Direct acted as Trustees for our employee stock option scheme. I am fully convinced we have made the right choice.

Umasree Parvathy

Chief Peoples Officer, Northern Arc

They worked alongside with us during the process great example of collaborative efforts to customize an employee stock option plan from scratch.

Yeoh Chen Chow

Co-Founder, MyFave

Their meticulous study and report gave us relevant data to take an informed decision. We are glad we engaged ESOP Direct.

Shailesh Singh

Head HR, Max Life Insurance

We entrusted our complete Plan administration function to ESOP Direct.I wish ESOP Direct greater success in the coming years.

Mona Cherian

President and Group Head HR, Thomas Cook

Qapita Works With Companies Across the Globe From Seed Stage to Listing and Beyond

Get Audit-Grade Valuations You Can Trust

Essential for transparent reporting, attracting investment, and building stakeholder confidence.

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FAQs

Frequently asked questions

What valuation methodologies does Qapita use for ESOP valuations?

Qapita uses regulator-accepted valuation methods such as the Discounted Cash Flow (DCF) model, Market Comparables, and Option Pricing Models (e.g., Black-Scholes / Modified models) tailored for Indian regulatory frameworks and cap table dynamics. These methodologies are documented and defendable for auditors and regulators.

Can Qapita handle complex capitalization structures in valuation?

Yes. Qapita’s valuation engine is designed to handle convertible instruments, multiple funding rounds, preferential rights, and varying share classes, reflecting true economic ownership and ensuring valuation accuracy.

How is ESOP valuation pricing structured on Qapita?

ESOP valuation pricing is based on company complexity, stage, and reporting needs. Clients get transparent cost estimates before engagement, and valuation fees factor in regulatory requirements unique to Indian ESOP compliance.

Does Qapita support multi-jurisdictional valuation needs?

Qapita’s valuation outputs can support Indian compliance and help multinational companies align reporting across jurisdictions by reconciling Indian fair value with global reporting norms.

What is ESOP valuation and why is it important in India?

ESOP valuation estimates the fair market value of employee stock options. In India, it ensures compliant grant pricing, accurate financial disclosures, correct tax reporting, and transparent employee communication, reducing regulatory risk.

How is ESOP valuation different from 409A valuation in India?

A 409A valuation is a U.S. process. Indian ESOP valuations may follow similar financial principles but are specifically aligned with Indian regulations, ICAI standards, and SEBI guidelines. Multinational companies may not rely on 409A alone for both Indian and US compliance.

What happens if a company delays updating its ESOP valuation?

Delaying valuations can lead to audit objections, incorrect tax reporting, potential penalties, and employee disputes over option value. Regular updates are essential for compliance and clarity.

Can an ESOP valuation be challenged by auditors?

Yes. Without proper documentation of methodology, underlying assumptions, and market data linkage, auditors can question valuation reliability. Defensible valuation reports reduce this risk.

Will ESOP valuation affect employee tax liability in India?

Yes. The valuation outcome influences the perquisite value on exercise, which affects income tax and securities transaction tax (STT) when options are exercised. Accurate valuations help employees and employers manage tax exposure.

Do startups need a valuation before issuing ESOPs?

Yes. Issuing ESOPs without a proper valuation can lead to incorrect pricing, regulatory non-
compliance, and downstream tax issues.

Is ESOP valuation mandatory for private and listed companies?

Yes. Both private and listed companies must obtain compliant valuations to issue stock options, file accurate financial reports, and align with Indian audit and tax standards.

Full spectrum valuations by our in-house experts. Built for Indian compliance.​

Recognized as a Global Leader on G2

Why Indian companies choose Qapita for ESOP valuations​

Designed for startups to listed companies​

Ensure confidence across stakeholders​

Seamless integration with cap tables and equity data​

How our ESOP valuations work for you​

Merchant banker + registered valuer = one trusted source​

Get it right from the first grant​

Enable employee liquidity with compliant pricing​

Support every transaction with audit grade valuation​

Accounting aligned. Auditor approved.​

Compliant valuations for global structures​

Words from our valued customers

Get Audit-Grade Valuations You Can Trust

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Save Hours Every Week

Ensure Compliance with Confidence

Scale as You Grow

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Helping you elevate your equity management

From accurate valuations to broader equity goals

ESOP Trust Formation and Trustee Services

ESOP Tax Guides

IPO Preparation

Our Integrations

Stay ahead of the curve

Frequently asked questions

What valuation methodologies does Qapita use for ESOP valuations?

Can Qapita handle complex capitalization structures in valuation?​

How is ESOP valuation pricing structured on Qapita?​

Does Qapita support multi-jurisdictional valuation needs?​

What is ESOP valuation and why is it important in India?​

How is ESOP valuation different from 409A valuation in India?

What happens if a company delays updating its ESOP valuation?​

Can an ESOP valuation be challenged by auditors?

Will ESOP valuation affect employee tax liability in India?​​

Do startups need a valuation before issuing ESOPs?​

Is ESOP valuation mandatory for private and listed companies?

Work with SEBI-Registered Valuers You Can Trust.

Full spectrum valuations by our in-house experts. Built for Indian compliance.

Why Indian companies choose Qapita for ESOP valuations

Designed for startups to listed companies

Ensure confidence across stakeholders

Seamless integration with cap tables and equity data

How our ESOP valuations work for you

Merchant banker + registered valuer = one trusted source

Get it right from the first grant

Enable employee liquidity with compliant pricing

Support every transaction with audit grade valuation

Accounting aligned. Auditor approved.

Compliant valuations for global structures

Can Qapita handle complex capitalization structures in valuation?

How is ESOP valuation pricing structured on Qapita?

Does Qapita support multi-jurisdictional valuation needs?

What is ESOP valuation and why is it important in India?

What happens if a company delays updating its ESOP valuation?

Will ESOP valuation affect employee tax liability in India?

Do startups need a valuation before issuing ESOPs?