Comment on The IPO Markets - Part 1

Sujeet Vhanawade commented on 10 Feb 2017, 05:48 PM

hello, another question.
at initial seed funding, promoter and two angel broker invested 5 Cr. and as the face value of the each share is 10 Rs so there is total 50L shares. out of which only 25L shares are kept by Promoter and 2 Angel Brokers, still 25L shares are not allotted.
is that means 25L of shares for 5 Crs creates the perception of valuation of company is 10 Crs initially because
25L shares(50%) = 5 Crs
then 50L shares(100%) = 10 Crs
is my understanding is true?

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