Situation

A large, globally integrated industrial group initiated a restructuring to consolidate its captive power generation business into the parent entity. The objective was to optimize capital allocation, enhance operational synergies, and simplify the group structure.nnThe transaction required an independent valuation to determine a fair share exchange ratio under a court-approved scheme of arrangement.

Challenges

• Valuation of capital-intensive regulated power assetsnComplex inter-company consumption linkagesnMulti-layered regulatory scrutiny (NCLT, SEBI, Companies Act)nNeed for audit-defensible outputs within tight timelines

Approach

• Built integrated DCF models reflecting operational interdependenciesnApplied triangulated valuation approach (DCF, Trading Multiples, Transaction Benchmarks)nConducted scenario and sensitivity analysis on tariffs, fuel costs, and utilizationnEnsured alignment with valuation standards and regulatory expectationsnDelivered fully documented, litigation-ready valuation reports

Outcome

• Supported a fair and defensible share exchange rationEnabled smooth progression through regulatory and shareholder approvalsnStrengthened stakeholder confidence through transparent valuation methodologynFacilitated strategic consolidation of energy operations