1:1 bonus shares: Multibagger SME IPO turns ₹1.20 lakh into ₹10.80 lakh in three years

livemint.com:

Multibagger IPO: Atam Valves IPO (Initial Public Offering) is one of those fixed issues listed on BSE SME exchange that has delivered whopping return to its long term allottees despite having a par listing. The fixed SME issue was offered at a price of ₹40 apiece in September 2020 and one lot of the public issue comprised 3,000 shares. Eventhough, the BSE SME stock listed at issue price, it has ascended to the tune of ₹180 during Monday deals.

But, money is not in buying and selling of stocks. It's in wait. Means, one can maximise one's return by holding a quality stock as long as it can.

During a long term hold, an investor enjoys benfit of other than stock appreciation as well. These benefits include, dividend payment, bonus shares, stock subdivision, buyback of shares, etc. Thse rewards may not look attractive at an immediate look, but in long term, these benefits help an investor's money to grow manyfolds.

Those who don't believe in above mentioned claim, they need to look at Atam Valves IPO. This Multibagger SME IPO, as mentioned above was launched in September 2020 but opened at discount. But, those remained invested in the scrip till date after stock allotment, their ₹1.20n lakh has turned to ₹10.80 lakh today.

The SME stock has risen to the tune of ₹180 apiece levels. But, the company issued 1:1 bonus shares in these three years, that worked as icing on the cake. As per the information available on BSE website, Atam Valves shares traded ex-bonus on 21st October 2022 for issuance of bonus shares in 1:1 ratio.