1:2 stock split: Multibagger SME IPO turns ₹1.26 lakh to ₹6.15 lakh in 7 years
1:2 stock split: Money is not in just buying and selling stocks but in holding it for as long as one can. A long-term investor not just gains from the rise in the stock price but from the various other rewards that a listed company declares from its capital reserves. These rewards could be in the form of bonus shares, dividends, buyback of shares, stock split, etc.
Prima facie, these rewards may not look big but in the long-term, these benefits go on to play an important role in the absolute return of a stock market investor. To understand how this long-term time horizon helps you get the benefit of these rewards and its impact on one's absolute return, we need to look at the journey of Dev Information Technology or Dev IT shares from the primary market to the secondary market. Dev IT IPO was launched on 31st March 2017 at a fixed price of ₹42 per share.
One lot of the public issue comprised 3,000 company shares and it was proposed for listing on the NSE SME Emerge platform. The NSE SME stock listed flat at ₹50 apiece on NSE on 17th April 2017. Dev IT share price today is ₹102.50 apiece on NSE and it is listed on BSE as well.
So, it is now a mainboard stock. Also Read: FY24 market review: 120 stocks from Nifty 500 gave multibagger returns, 55 in the red; check list of top gainers, losers The IT stock traded ex-split on 25th November 2022. The company board decided to go for stock split in 2022 and they declared stock subdivision from the face value of ₹10 per share to ₹5 per share.
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