Issue of shares on premium

What is the reason for issuing shares on Premium .

For example  Sometimes the Company has Nominal value of each share as 10 and issue at a Premium of Rs. 990. What is the benefit to Company
If the Company issue share at a face value of Rs. 1000/- and not at premium then what will be the difference?

Replies (1)
premium and discount comes from the idea demand for the shares. The face value is what it is when the shares were introduced in the market. but with the changing demand and supply situations . The market value of a share might increase or decrease . Here then the concept of premium. That even though the face value is 10 but if now the market value of such share is 1000 the issue will be for 1000

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details