Calculation of value of equity ??

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This query is : Resolved

CA Abhishek Singh (Querist)

07 May 2023 Promoters
10000 shares
rs 10. Pd up Val. 100000
FII 5000 shares. 10. 50000
ESOP 5000 share. -- ----- Total. 150000
In 1st 2nd and 3rd Yr shares are likely to vest 20% , 30% and 50% out of which 80% shall get subscribed

Calculate the value of equity ?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

12 July 2024 To calculate the value of equity based on the given information and the vesting schedule for ESOP shares, let's break down the steps:

1. **Initial Share Details:**
- Promoters: 10,000 shares, Rs. 10 paid-up value each.
- Foreign Institutional Investors (FII): 5,000 shares, Rs. 10 paid-up value each.
- ESOP: 5,000 shares, details on paid-up value are missing.

2. **Total Paid-Up Capital:**
- Promoters: = Rs. 1,00,000
- FII: 5,000 shares * Rs. 10 = Rs. 50,000
- Total Paid-Up Capital = = Rs. 1,50,000

3. **ESOP Vesting Schedule:**
- Total ESOP shares to vest = 5,000 shares

4. **Subscribed Shares (80% of Vesting):**
- Subscribed ESOP shares = 4,000 shares

5. **Total Shares After Vesting:**
- Total shares = Promoters' shares + FII shares + Subscribed ESOP shares
- Total shares = 19,000 shares

6. **Value of Equity:**
- The value of equity is typically the paid-up capital divided by the total number of shares.
- Value of equity = Total Paid-Up Capital / Total Number of Shares
- Value of equity = Rs. 1,50k / 19k shares
- Value of equity = Rs. 7.89 per share (approximately)

Therefore, based on the given information and calculations, the value of equity per share is approximately Rs. 7.89. This is derived from the total paid-up capital divided by the total number of shares after considering the vesting of ESOP shares.

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