What is face value in IPO?

A

akfaisel

New Member
#1
#1
Hi,

This is the case of IPO.

For instance,

The face value is Rs.10 and the bid price range is 100 and 120, what is the use/value of face value then?

The actual price of the share is just 10 and why should I bid the share between 100 and 120?
 
G

GBPEURUSD

New Member
#2
#2
akfaisel said:
Hi,

This is the case of IPO.

For instance,

The face value is Rs.10 and the bid price range is 100 and 120, what is the use/value of face value then?

The actual price of the share is just 10 and why should I bid the share between 100 and 120?
Click to expand...
face value or par value is the nominal value. Companies come up with a price during the IPO, below which they wouldn't issue shares. its doesn't have a relation to market value and is required by the law.
your bid range is determined by market fundamentals.

Cheers
 
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