Face Value

Face value (also called nominal value) is the base price of a share set by the company when it is issued. It is mainly used for accounting purposes and for calculating dividends.

When a company issues shares for the first time, it assigns a face value (like ₹10 per share). However, when shares are sold to the public (IPO), they are usually offered at a higher price called the issue price.

The difference between the issue price and face value is known as share premium.

Face value usually remains constant even after the company gets listed in the stock market.

Example:

If a share has a face value of ₹10 and the company declares a 100% dividend, then the investor will receive ₹10 per share as dividend.