Share value

This query is : Resolved

Share Report Follow Query Ask a Query

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)
Follow

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 online

(Expert)
Follow

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

---

### 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.

---

### 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.

---

### 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 |

---

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

---

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

REGIWISE CONSULTANTS PVT LTD

bhavesh

Tanishka Khandelwal

Fredrick Samraj

Anant Kuber

Subscribe Now

Share value

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Manager- Finance and Compliance

Senior Executive

Accountant

GST CONSULTANCY

GST CONSULTANT