What are Premium Issues?

Tata shareMost Companies shares have a face value of Rs.10 though not always offer to the public at this price. Companies can offer a stock (share) with a face value of Rs.10 to the public at a higher price.The difference between the offer price and the face value is called the premium.

For example :

If face value of  Company is 10 and offer price is 100 , its premium is 90

As per the SEBI rules, new companies can offer shares to the public at a premium

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