How to calculate face value shares of an individual (taking an example of 100 shares)?

Practical Calculations of Face Value Split (Indian Rupees)

Let’s consider an example with an individual holding 100 shares of a company before a 2-for-1 stock split.

Before Split:

• Number of shares held by the individual: 100
• Face value per share: ₹10
• Market price per share: ₹200

Company announces a 2-for-1 stock split.

After Split:

1. Number of Shares After Split:

New Number of Shares=Old Number of Shares × Split Ratio

New Number of Shares=100×2=200

• New Face Value per Share:

New Face Value per Share=Old Face Value per Share/Split Ratio

New Face Value per Share=₹10/2 ​= ₹5

• New Market Price per Share:

New Market Price per Share=Old Market Price per Share/ Split Ratio

New Market Price per Share=₹200/2=₹100

Summary of Changes for the Individual Shareholder

• Before Split:
  • Number of Shares: 100
  • Face Value per Share: ₹10
  • Market Price per Share: ₹200
  • Total Value of Shares: 100×₹200=₹20,000
• After Split:
  • Number of Shares: 200
  • Face Value per Share: ₹5
  • Market Price per Share: ₹100
  • Total Value of Shares: 200×₹100=₹20,000