What is the minimum price of the share?

Answer 1

The minimum price of a share is typically called its "face value" or "par value." This is the nominal value assigned to a share by the company’s articles of incorporation and represents the lowest price at which a share can originally be issued to the public. For most Indian companies, this is often set at ₹10 or ₹1 per share, but the actual face value can vary based on what the company chooses at incorporation.

When considering a purchase of 1000 shares, the absolute minimum investment would be:

Minimum Investment

=

Face Value

×

1000

Minimum Investment=Face Value×1000

For example, if a share’s face value is ₹10, then buying 1000 shares at face value would cost:

10

×

1000

=

₹

10

,

000

10×1000=₹10,000

However, the price at which shares are traded in the market—known as the "market price" or "offer price"—is usually much higher than the face value. For example, Reliance Power’s face value was ₹10, but its offer price was around ₹430 per share at the time of its IPO. Thus, the minimum amount required to buy 1000 shares would be based on the current market price, not the face value, except during the initial public offering at face value.

In summary:

The face value is the minimum price for issuing a share, but market price determines what one actually pays for existing shares.

For 1000 shares, the minimum possible price equals face value × 1000, but in practice one usually pays the prevailing market price.

Answer 2

it's face value is the minimum price of the share