What is Face Value in IPO?
5paisa Research Team
Last Updated: 20 Aug, 2024 04:13 PM IST

Content
- Introduction
- What Is Face Value in IPO?
- How Are Shares Sold at Face Value?
- Face Value vs Issue Price
- Calculation of Face Value of IPO
- What Are the Different Ways to Determine the Offer Price and Market Value?
- Wrapping Up
Introduction
Face Value in IPO means the value of a company before the stock goes to market. The face value is usually determined by an investment banker's analysis of the company and its prospects. This determines what price per share will be paid for the stock in the IPO face value (Initial Public Offering). Once the face value is established, a price can be set for each share offered in the stock marketplace.
The face value, aka par value, is printed on every share certificate, representing 1/- (one rupee) for each equity share. However, in reality, share prices are generally higher than their nominal value/face value. In IPO, Face value may be defined as - "The original price at which companies issue new shares to investors."
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