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Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2012 What is the better value of Equity Share ? 1/- or 10/- or 100/- ?

Ajay Mishra

Ajay Mishra (Expert)

11 December 2012 Hi

Rs.10 per shares is best using face value of Equity shares in Indian Company capital structure and commonly used.

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2012 What happen if share value is 100/-

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

25 July 2025 Here’s a quick explanation about **face value of equity shares** and what happens if the face value is Rs. 100:

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### Face Value Options: ₹1, ₹10, ₹100 — What’s Best?

* **₹10 per share** is the **most common face value** in India for equity shares.
* It’s a **standard practice** because it balances ease of share division and affordability.
* Using ₹1 or ₹100 face value is less common but allowed.

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### What Happens if Face Value is ₹100?

* **Fewer shares** are issued for the same capital amount (e.g., Rs. 1,00,000 capital = 1,000 shares at ₹100 face value).
* This means the **number of shareholders/shares is smaller**, which might reduce liquidity.
* **Nominal value per share is higher**, but it does not affect the market price or intrinsic value.
* For small investors, high face value shares may be less affordable.
* Compliance and administration are simpler with standard face value like ₹10.

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### Summary Table

| Face Value | Pros | Cons |
| ---------- | ---------------------------- | -------------------------------------- |
| ₹1 | More shares, affordable | May increase paperwork, record-keeping |
| ₹10 | Industry standard, balanced | — |
| ₹100 | Fewer shares, simpler ledger | Less affordable, lower liquidity |

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**In short:** ₹10 face value is recommended and widely accepted for Indian companies.

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If you want, I can help you prepare a note on **impact of face value on capital structure and shareholder base**. Interested?

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