Face Value (FV) 1. Definition: Face value is the nominal price of a share. 2. Equity Capital Calculation: Equity capital = Number of shares × Face value. Example: If a company issues 1 lakh shares with a face value of ₹10, total equity capital = ₹10 lakh. 3. Issuance Price: Shares can be issued at face value, a premium (higher price), or a discount (lower price). 4. Change in Face Value: It remains the same unless the company splits (reducing FV) or consolidates (increasing FV) shares. Example: If ₹10 FV share splits into 5 shares, new FV = ₹2 per share. 5. Dividend Calculation: Dividend is based on face value, not market price. Example: If a company with FV ₹10 declares a 30% dividend → ₹3 per share. If FV ₹2, 30% dividend → ₹0.60 per share.