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Premium & Discounted Equity Sales

Apohan Corporate Consultants Pvt. Ltd. > Mergers & acquisitions > Premium & Discounted Equity Sales

Classification based on offer price relative to the fair market price:

Following are the two cases of relative pricing. This comparison is made in the context of popularly perceived fair price. (Both the following prices would be mostly at a premium over the face value of the share.)

Premium issue:
In this case , the investors pay a higher price over the book value or the market value or any other value that is perceived as a fair price by the wise.

Discounted issue:
In this particular case, the equity is issued at a discount with respect to the market price or the book value. Special consideration can be made with relative rehire is in private companies.

Apohan has expert’s understanding of the parameters that decide the premium or the discount in the merger and acquisition process. Apohan assists the businesses by negotiating the contract on their behalf to their best advantage. Apohan manages the transaction right from the problem identification phase, to the closure of deal with perfection.