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Rajeev Desai / ARTICLE

I have explained before and I am explaining again--Read this all members 3-4 times and learn by heart... Eq Capital is different then Eq shares. Orient Beverages Ltd- Eq Capital is 2 Cr. Eq capital is made up of 10 paid up shares. Each share is 10 Paid Up or 10 Face Value( FV) So Equity shares will be 20 Lacs. 20 Lacs shares X 10 FV = 2 Cr Eq Capital. We Buy Eq Shares and not Eq Capital--we buy shares which are 10 FV or 10 Paidup. So for 1% stake in Orient Beverages Ltd, one need to buy only 20,000 shares and not 2 Lacs shares. Because 20k shares is 1% of 20 lacs shares. Krishna wrote me - - Buying 1 Lakh shares, you can own 0.5% of this company, which also translates to absorbing 15% of free float shares. No, only buying 10,000 share will be worth 0.5% stake in Orient Beverages Ltd and not 1 lac shares... Eq Capital is not Eq shares. That is why I wrote in detail on HCP Plastene that 11 Cr Eq Cap , so 1.1 Cr shares and hence 1.10 Lacs shares will be 1% of stake in HCP Plastene. Same with Orient Beverages Ltd. Eq Cap 2 Cr, so shares 20 Lacs and so 20K shares, 20,000 shares is 1% of the Equity stake... Read 4-5 times....

Published Feb 28, 2026Updated Feb 28, 20263 min read
I have explained before and I am explaining again--Read this all members 3-4 times and learn by heart... Eq Capital is different then Eq shares. Orient Beverages Ltd- Eq Capital is 2 Cr. Eq capital is made up of 10 paid up shares. Each share is 10 Paid Up or 10 Face Value( FV) So Equity shares will be 20 Lacs. 20 Lacs shares X 10 FV = 2 Cr Eq Capital. We Buy Eq Shares and not Eq Capital--we buy shares which are 10 FV or 10 Paidup. So for 1% stake in Orient Beverages Ltd, one need to buy only 20,000 shares and not 2 Lacs shares. Because 20k shares is 1% of 20 lacs shares. Krishna wrote me - - Buying 1 Lakh shares, you can own 0.5% of this company, which also translates to absorbing 15% of free float shares. No, only buying 10,000 share will be worth 0.5% stake in Orient Beverages Ltd and not 1 lac shares... Eq Capital is not Eq shares. That is why I wrote in detail on HCP Plastene that 11 Cr Eq Cap , so 1.1 Cr shares and hence 1.10 Lacs shares will be 1% of stake in HCP Plastene. Same with Orient Beverages Ltd. Eq Cap 2 Cr, so shares 20 Lacs and so 20K shares, 20,000 shares is 1% of the Equity stake... Read 4-5 times....