Technopoly Ltd., an unlisted public company, having a paid up equity share capital of ₹3.00 crore consisting of 30,00,000 equity shares of ₹10 each fully paid up, proposes to reduce the denomination of equity shares to l

Regulation 31 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, provides that an issuer making an initial public offer may determine the face value of the equity share in the following manner: If the issue price per equity share is ₹500 or more, the issuer shall have the option to determine the face value at less than ₹10 per equity share, however, the face value shall not be less than ₹1 per equity share; If the issue price per equity share is less than ₹500, the face value of equity shares shall be ₹10 per equity share. However, the above mentioned provisions shall not apply to an initial public offer made by any government company, statutory authority or corporation or any special purpose vehicle set up by any of them, which is engaged in infrastructure sector. Therefore, the amount of issue price is the determining factor for face value of the equity share. Further, the amount of premium proposed to be charged by the company will be the determining factor for the face value of shares.