Face Value

What it is

Face value, also called par value, is the original nominal worth assigned to a share in the company's records — typically ₹1, ₹2, ₹5 or ₹10 in India. It is an accounting figure fixed by the company, not the market price. A stock with a face value of ₹10 might trade at ₹2,000 in the market; the face value stays ₹10 regardless of how the share price moves.

Why it matters

Several corporate actions are calculated on face value rather than market price. Dividends are often declared as a percentage of face value — a "200% dividend" on a ₹10 face value means ₹20 per share, which can sound dramatic but is small relative to a high market price. Face value also appears on the balance sheet as share capital (face value × number of shares) and is the reference point for bonds and preference shares.

Stock splits and where to find it

Face value changes only in a stock split, where a company reduces the face value to increase the number of shares — e.g. splitting a ₹10 face value share into ten ₹1 shares makes the stock more affordable per unit and improves liquidity, without changing the total value you own. Every NSE/BSE-listed stock's face value is shown on screeners and the exchange website, SEBI permits face values down to ₹1, and whenever a company announces a dividend or a split the face value is the base for the calculation.

Common mistakes

Beginners confuse face value with market value or book value — three completely different things. Some assume a low face value means a "cheap" stock, which is meaningless. Others misread a high dividend *percentage* without converting it to rupees per share. Treat face value as a technical/accounting reference for dividends, splits and capital — never as a guide to whether a stock is cheap or expensive.