Comment on The IPO Markets - Part 1

Anshul Mittal commented on 29 Sep 2018, 06:41 PM

Hi sir

I have 2 doubts:

1. Why would promoters and angel investors retain only 50% of the shares ?

2. Assuming company has not started the work and INR 5cr is in company’s bank account as it is. Now as we have assumed price of each share is INR 10, that means 10% stake would be valued at INR 50 lacs. So if a person A buys that 10% stake, then he would deposit INR 50 lacs in company’s bank account. Now my question is, the 2 angel investors by giving 50 lacs each have stake of 5% each and the person A by contributing the same amount holds 10% stake. Doesn’t this mean that angel investors are at loss here ?

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