Calculation of value of equity ??

This query is : Resolved

CA Abhishek Singh (Querist)
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07 May 2023 Promoters
10000 shares
rs 10. Pd up Val. 100000
FII 5000 shares. 10. 50000
ESOP 5000 share. -- ----- Total. 150000
In 1st 2nd and 3rd Yr shares are likely to vest 20% , 30% and 50% out of which 80% shall get subscribed

Calculate the value of equity ?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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12 July 2024 To calculate the value of equity based on the given information and the vesting schedule for ESOP shares, let's break down the steps:

1. **Initial Share Details:**
- Promoters: 10,000 shares, Rs. 10 paid-up value each.
- Foreign Institutional Investors (FII): 5,000 shares, Rs. 10 paid-up value each.
- ESOP: 5,000 shares, details on paid-up value are missing.

2. **Total Paid-Up Capital:**
- Promoters: = Rs. 1,00,000
- FII: 5,000 shares * Rs. 10 = Rs. 50,000
- Total Paid-Up Capital = = Rs. 1,50,000

3. **ESOP Vesting Schedule:**
- Total ESOP shares to vest = 5,000 shares

4. **Subscribed Shares (80% of Vesting):**
- Subscribed ESOP shares = 4,000 shares

5. **Total Shares After Vesting:**
- Total shares = Promoters' shares + FII shares + Subscribed ESOP shares
- Total shares = 19,000 shares

6. **Value of Equity:**
- The value of equity is typically the paid-up capital divided by the total number of shares.
- Value of equity = Total Paid-Up Capital / Total Number of Shares
- Value of equity = Rs. 1,50k / 19k shares
- Value of equity = Rs. 7.89 per share (approximately)

Therefore, based on the given information and calculations, the value of equity per share is approximately Rs. 7.89. This is derived from the total paid-up capital divided by the total number of shares after considering the vesting of ESOP shares.