3:5 bonus shares, 1:10 stock split: Multibagger SME stock turns ₹1 lakh an allottee into ₹4.41 lakh in 5 years
3:5 bonus shares, 1:10 stock split: A long-term stock market investor enjoys some extra benefits over a short-term investor or a trader. While short-term investors and traders earn from the stock movement only, a long-term investor gets various rewards that a listed company announces from its capital reserves. These rewards are announced in the form of dividends, bonus shares, stock split, buyback of shares, etc.
These rewards may not impact one's investment at the time of reward announcement but in a longer period, these rewards make a huge impact on one's shareholding and the absolute return of an investor. Also Read: Adani Power shares surge 5% as Q3 net profit sees multi-fold jump To understand the impact of these rewards, one needs to look at the journey of Osia Hyper Retail IPO. This fixed-price NSE SME IPO was launched on 26th March 2019 for ₹252 per equity share.
The SME stock was listed on the NSE SME platform on 5th April 2019 at ₹255, delivering a nominal premium of ₹3 per share to its allottees. However, if an investor had remained invested in this stock despite this negligible return on the listing date, then the absolute value of one's money would have surged over four times in the last five years. As mentioned above, Osia Hyper Retail IPO was launched at a fixed price of ₹252 per equity share.
A bidder was allowed to apply in lots and one lot of the Osia Hyper Retail IPO comprised 400 company shares. This means the minimum investment of a lucky allottee had been ₹1,00,800 (400 x ₹252). Also Read: Sensex, Nifty surge over 1%: 4 key factors driving the rally As per the Osia Hyper Retail share price history available on the NSE website, the SME stock traded ex-bonus on 21st June 2022 to find out eligible
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