1:5 bonus shares: Multibagger SME IPO turns ₹1.20 lakh to ₹3.93 lakh in seven years
Multibagger IPO: Investing in stocks or public issue is like investing in a business and one should hold a stock as long as one can. According American billionaire and ace investor Charlie Munger, moeny is not in buying and selling of stock but in hold. The Vice Chairman of Berkshire Hathaway wants to convey that equity investment is for long term and one should hold one's position for long term after being satishfied with the busines model and its sustained business after scanning its financials.
For those, who want to understand the value of being a long term stock investor, one needs to look at Shashijit Infraprojects IPO. The public issue worth ₹3.49 crore was launched in September 2023 and it was proposed for listing on BSE SME exchange. The SME stock listed on BSE in October.
The fixed issue was offered at a price of ₹15 per share and lot size of the IPO comprised 8,000 company shares. So, a retail investor had to invest at least ₹1,20,000 ( ₹15 x 8,000) while applying for the SME IPO. Also read: Small-cap FMCG stock hits upper circuit on third day in a row.
Do you own? The SME IPO listed on BSE at ₹15.85 per share levels, delivering around 5.50 per cent listing gain to the lucky allottees. However, if an allottee had remained invested in this small-cap stock till date, despite postive listing it should have benefited from 1:5 bonus shares that the company declared in October 2018. As per the information available on official BSE website — bseindia.com, the small-cap SME stock traded ex-bonus on 12th October 2018 to find out eligible shareholders for issuance of bonus shares in 1:5 ratio.
Read more on livemint.com
