Effect on Share price


#1

hi friends

my query is :
Suppose an IT company is giving shares to its employees under Employees stock/shares purchase scheme . Following is the data:

Total number of equity shares to be issued under the scheme: 1500000 (one crore fifty lakhs)

Number of total equity shares of the company prior to the scheme: 10 crore
Face value: Rs 10/ per equity share

Issue price per equity share at the time of Companys Board Approval: Rs 180

CURRENT MARKET PRICE : Rs 175

Percentage of discount to employees : 25 % ( Rs 145 per equity share to employees)

Maximum no of shares an employee can buy: 1000

Lock in period: 2 years

What will be the price per equity share after the additional one crore shares get listed in the market ? that is what will be the price per equity share post allotment of shares ?

Can any of my friend show the calculation involved while arriving the price of share post allotment and listing ? is there any benefit for employees ?


#2

You are asking too heavy question, as we haven’t seen previous performance of that company. There is no strict calculation for an IPO price, it is usually sort of mix from current balance sheet value and some premium on price.