Calculation of average cost of shares for promoters

Biker

Active Member
#1
In IPO ads I see that average cost of acquisition of equity shares for promoters would be very very less (Rs 1 or 2 and sometimes even in paise). I want to how is this possible and how is it calculated?

Even company is formed than shares are allotted to promoters at par (=book value at that time) of Rs 10 / share.

So average cost of acquisition for promoters should be Rs 10/share... no?

Any help?
 

monkeybusiness

Well-Known Member
#2
In IPO ads I see that average cost of acquisition of equity shares for promoters would be very very less (Rs 1 or 2 and sometimes even in paise). I want to how is this possible and how is it calculated?

Even company is formed than shares are allotted to promoters at par (=book value at that time) of Rs 10 / share.

So average cost of acquisition for promoters should be Rs 10/share... no?

Any help?
Promoters before IPO are at liberty to issue themselves liberals bonuses, dividends.
 

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