Regarding Equity Share capital

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P. Shah (Querist)
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09 August 2020 Please can anyone clear my concept?.
1) I have confusion regarding Equity share capital against outstanding shares.
Equity share capital is shown in Balance sheet liabilities side for outstanding shares .Which outstanding shares are shown whether it hold by outsiders only or also promoter holding in equity share capital.
2) What Rate per share is taken for for multiplying x No of outstanding shares .
I think they do calculate share at issue price which is issued during ipo
For eg Rossari Biotech IPO issued at Rs 425 per share.

CA KARAN SINGH

CA KARAN SINGH (Expert)
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09 August 2020 1. Yes, Outstanding shares include shares held by the promoters also.
2. Face value of a share is considered for calculating Share capital (Outstanding share x Face value of a share)

3. In the case of IPO announced by Rossari Biotech, the face value of Share was Rs. 2, and the rest of the amount was charged by the company as share premium.
In that Case, Share Capital will be = (No. of Oustanding Shares x Rs. 2)
and Share premium will be = {No. of shares X (Rs. 425 - Rs. 2)}