ZestyQuokka
ZestyQuokka

Private company valuations

What are the ways to reduce the stock price of a private company before it goes for IPO?

Example:

Let's say the stock price of a private company is Rs 8000 with a face value of Rs 10. So one way here is to split the stock in a 1:10 ratio making the stock price Rs 800 which might make it easier for growth of the company

Another way I'm aware is to issue bonus shares to the employees which would reduce the stock price

What other ways are there?

I'm looking for answers where there are benefits to employees and where there aren't

15mo ago
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WobblyNoodle
WobblyNoodle
InMobi15mo

Double triggered RSUs are the most employee friendly stocks in private companies.

JumpyPickle
JumpyPickle

Can you elaborate more on this?

FluffyNugget
FluffyNugget
Plivo15mo

How does RSU even come in picture for private companies ?

ZestyQuokka
ZestyQuokka
Karza15mo

I'm mainly looking for answers in terms of ESOPs

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