Face Value
The nominal value assigned to a share by the company at issue, used for accounting and for expressing dividends, and unrelated to what the share trades for.
Formula
Paid-up Share Capital = Face Value x Number of Shares Issued
Unit
₹
In depth
Face value, also called par value, is an accounting label rather than a price — it fixes how much of the money raised sits in share capital, with the rest going to the securities premium account. Its one practical consequence for investors is that companies often declare dividends as a percentage of face value, which produces headline percentages that look spectacular and mean very little. A stock split reduces face value proportionally and raises share count, leaving total share capital unchanged. Confusing face value with book value or market price is one of the most common beginner errors.
Worked example
A share has face value ₹10 and trades at ₹850. A dividend declared at '150%' means 150% of face value, which is ₹15 per share, not ₹1,275. Measured against the actual price, that is 15 / 850 = 1.76% — the honest number.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Face Value” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.