That depends on the initial share capital of the company. Typically when a private limited company is established the share capital has to be Rs.1,00,000. This could be 10,000 shares x Rs.10 each or 1,000 shares of Rs.100 each or any such combination. The founders typically can pick whatever such share capital structure they like.
Aug 06 2012 12:56 PM
This share capital will keep increasing at every stage the company raises new money. So most likely before the IPO 100% of the company will not be owned by the promoters. There will be other small investors as well who own anywhere from 5% to 60% of the company.
Does that make sense ?