Two bonus shares, one stock split: Multibagger SME IPO turns ₹1.2 lakh to ₹21.63 lakh in six years

livemint.com:

Multibagger SME IPO: Investing in stocks is like investing in business. Like an owner, if an investor stays invested in a good business for long, he or she would be able to pocket whopping returns. Ace investor and American businessman Charlie Munger had once said that money is not in buying and selling of stocks but in wait.

So, a stock market investors should try and hold a stock as long as it can because a long term investor not just gains from stock price increase but from other rewards that a listed company gives to its investors from its capital reserves. These rewards include stock split, bonus shares, dividends, etc. To understand how these rewards benefit a long term investor, we need to look at IFL Enterprises shares.

The SME IPO was launched in March 2017 and it was listed on BSE SME exchange on 21st March 2017. In these near six and half years, this SME stock has declared two bonus shares and one stock split. If an allottee had remained invested in this small-cap stock till date after allotment of shares, its ₹1.20 lakh would have turned to ₹21.63 crore today.

As per the information available on official BSE website, this multibagger IPO tuned ex-bonus in September 2022 and April 2023. On 21st September 2022, IFL Enterprises shares traded ex-bonus for finalising beneficiary shareholders for issuance of bonus shares in 1:1 ratio means one bonus shares for every one share held by an eligible shareholder. Later, on 21st April 2023, IFL Enterprises shares again traded ex-bonus for issuance of bonus shares in 1:4 ratio, means one bonus share for holding four shares of the company.