Comment on The IPO Markets - Part 1

Parveen Kumar commented on 30 Jan 2017, 11:43 PM

Yupp understood the part,thank you for not replying.It helped to make my Brain work. 14% stare value is 7 crore. Meaning he received 700000 shares(14%) for 7crore. If we calculate 700000 shares value is 7crore and what is value of company all shares i.e. 50lakh shares it is 50crore .So just by investing 7crore for 14% share the man thought this company is worth 50crore but in actual when started it was just 5crore worth .Ten times increase in company valuation. Also face value of share which company alloted was 10 increased to 500 per share after valuation of 50crore

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