The face value of a share is the nominal value fixed by a company when it issues the share, usually ₹1, ₹2, ₹5 or ₹10 in India. It is written in the company's records and does not change with market prices. Face value is also called par value or nominal value.
What face value is
When a company is formed, its share capital is divided into units of a fixed nominal value. If a company has issued 1 crore shares with a face value of ₹10, its paid-up equity share capital is ₹10 crore. This figure appears on the balance sheet. The face value is an accounting and legal figure; it tells you nothing about how much the share is worth in the market today.
How it works in India
Face value matters in a few specific places. First, dividends are often announced as a percentage of face value. A dividend of 50% on a share with a face value of ₹10 means ₹5 per share, not 50% of the market price. Second, a stock split reduces the face value: a company that splits shares of ₹10 face value into ₹2 face value gives shareholders five shares for each one held. Third, the face value forms part of the company's share capital, which is used in legal and accounting matters.
Face value is different from two other common values. Market price is what the share trades at on the exchange, set by buyers and sellers. Book value per share is the company's net worth divided by the number of shares, taken from its accounts.
A simple example
A company's share has a face value of ₹10 and trades at ₹450. It announces a dividend of 30%. Your dividend is 30% of ₹10, which is ₹3 per share. Later, the company splits each ₹10 share into five shares of ₹2 face value. If you held 100 shares, you now hold 500 shares, and the market price adjusts to roughly one-fifth, so the total value of your holding stays about the same.
Why it matters for investors
Understanding face value helps you read dividend announcements correctly, understand stock splits, and avoid comparing companies on a number that has little to do with their real value.
Face value, issue price and premium
When a company sells new shares, for example in an IPO, it usually sells them at a price well above face value. The difference is called the share premium. If a share with a face value of ₹10 is issued at ₹250, the premium is ₹240 per share. In the company's accounts, ₹10 per share goes to share capital and ₹240 goes to a reserve called the securities premium. This is why a company's share capital on the balance sheet is often small compared with the money it actually raised from shareholders.
Example on PositoAI: dividends as a percentage of face value
Dividends recorded on PositoAI's Actions page show why percentages of face value can look dramatic. TCS paid ₹12 per share (ex-date 14 Oct 2026) on a face value of ₹1, which is 1,200% of face value. Hindustan Unilever paid ₹22 on ₹1 (2,200%), Infosys ₹25 on ₹5 (500%), Coal India ₹5.25 on ₹10 (52.5%) and Reliance Industries ₹6 on ₹10 (60%).
Measured against the share price, these amounts are much smaller: TCS's ₹12 was less than 1% of its share price. Also, 130 of 2,140 ranked Indian shares traded below ₹10, a common face value, which shows that a market price can sit below face value. (As on 20 Oct 2026.)
Common misconceptions
"A low face value means a cheap share." No. Face value says nothing about whether a share is cheap or expensive.
"A 100% dividend doubles my money." It means 100% of face value, which is usually a small fraction of the market price.
"Face value changes every day." It changes only through corporate actions such as splits or consolidations.
Frequently asked questions
Where can I find a share's face value?
In the company's annual report, exchange website and most stock research pages.
Does a stock split change my investment's value?
Not by itself. You get more shares at a proportionally lower price.
Can a share trade below its face value?
Yes. Market price can be above or below face value.
Why do companies choose ₹1 or ₹2 face value?
Often after splits, to make share prices more affordable for small investors.
How to use this on PositoAI
Track dividends, splits and bonus issues on the Actions page, and read our guides to stock splits and dividends for more. PosiStep 3 of PosiCourse, PositoAI's free stock market course, explains face value, outstanding shares and who owns a company.
Summary
Face value is the fixed nominal value of a share, set by the company, usually ₹1 to ₹10 in India. It is used to calculate dividend percentages and changes only through corporate actions such as splits. It is different from market price and book value, and it says nothing about whether a share is cheap or expensive.