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

16mo ago
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WobblyNoodle
WobblyNoodle
InMobi16mo

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

JumpyPickle
JumpyPickle

Can you elaborate more on this?

FluffyNugget
FluffyNugget
Plivo16mo

How does RSU even come in picture for private companies ?

ZestyQuokka
ZestyQuokka
Karza16mo

I'm mainly looking for answers in terms of ESOPs

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Top comments
user

Hey 👋 I have worked with a lot of my clients who own ESOPs. Some points to consider in your case: 1. Te...

user

The best way is to just exercise the esops. <imagine a normal distribution meme with both extremes saying this>

user

@Charliehebdo if FMV is lower than Strike price then it makes sense to buy the shares from open market instead of exe...