Comment on The IPO Markets - Part 1

abhishek jain commented on 13 Mar 2019, 08:37 AM

Hi Karthik,
Pardon my basic question.
Initially the promoter and angel investors(2 of his friends) were able to collect Rs 5 crore- I am assuming that they contributed the amount equally. At the face value of Rs 10, the alloted shares are 50 Lacs. You said, promoter keeps 40% equity and the other 2 investors 5% each. This takes to 50% or 2.5 crores worth of equity. Now isnt promoter and angel investors at a loss? they should have their own shareholding double( as per 50 lacs shares)?

View the full comment thread »