1:10 stock split: Multibagger SME IPO Suratwwala Business turns ₹1.20 lakh into ₹1 crore in four years
Multibagger IPO: Investing in stocks is like investing in a business; one should hold one's shareholding as long as possible after investing. A stock investor must believe that money is not in buying and selling stocks but in holding. So, one should hold the stock as long as one can; this rule also applies to the primary market investors.
An IPO investor should have the stock till the fair price of the proposed shares of the Company is achieved. One needs to look at the Suratwwala Business share price history to understand how long-holdings in an IPO can deliver. Suratwwala Business IPO was launched in August 2020 at a fixed price of ₹15 per share.
The fixed issue was proposed for listing on the BSE SME platform. A bidder was allowed to invest in this SME IPO in lots, and one lot of the BSE SME IPO comprised 8,000 company shares. So, the minimum amount required to invest in this SME IPO was ₹1.20 lakh ( ₹15 x 8000).
The SME stock was listed on August 13 2020, at ₹15.45 per share mark. However, after this tepid listing, if an allottee had remained invested in the scrip till today, its ₹1.20 lakh would have turned into more than ₹1 crore. Following the soft listing, the SME stock demonstrated a significant upside, leading to a 1:10 stock split on April 18, 2024.
This means that if an investor had held their shares until today, their initial shareholding would have increased tenfold. For instance, an initial investment of ₹1.20 lakh would have translated into a shareholding of 80,000 shares after the stock split. Suratwwala Business share price reached an intraday high of ₹125.40 apiece during morning deals.
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