Regarding shares of bank which is not yet listed

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I have shares worth 40000 of aditya anagha multistate credit co operative society limited which happens to be a bank. The shares were bought in 2016, we had to invest some amount in shares as we took loan from them. So as this bank is not yet listed on stock exchange. Does the price of stock incresed or not. As this bank have grown multifold since 2016. Please answer???

Replies (3)

You know, a dividend policy can attract shareholders, since it is a bank, default risks on investment is lower and this also can attract investors, and stock empirical evidence suggests that stock prices along with market cap usually improves. 

Another motive that you also had was risk return trade off wasn’t it? Your risk pays you more for the private equity that you own and hence the bank grew because of investors like you, their own venture capital developments, mergers etc.

Unlisted stock price can be affected by increase in assets: there two types of valuations and I’m sure the assets will increase during its growth stage and the share price will definitely rise based on liabilities 

Price method 1= 

Fair Market Value of Unquoted Shares=          (A+B+C+D-L)X(PV)
(PE)

Where,

A= book value of the assets in the balance-sheet but not including as mentioned below.

L= book value of liabilities shown in the balance-sheet, but not including as mentioned below.

B= the price which the jewellery jewellery and artistic work would fetch if sold in the open market on the basis of the valuation report obtained from a registered valuer.

C= fair market value of shares and securities as determined in the manner provided in this rule.

D= the value adopted or assessed or assessable by any authority of the Government for the purpose of payment of stamp duty in respect of the immovable property

PE= total amount of paid up equity share capital as shown in the balance-sheet

PV= the paid-up value of such equity shares.

price of unlisted share method 2= 

 

Fair Market Value of Unquoted Shares=          (A-L)  X  (PV)
(PE)

Where,

A= book value of the assets in the balance-sheet but not including as mentioned below.

L= book value of liabilities shown in the balance-sheet, but not including as mentioned below.

PE= total amount of paid up equity share capital as shown in the balance-sheet

PV= the paid-up value of such equity shares


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