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Business News/ Markets / Stock Markets/  1:1 bonus share, 1:10 stock split: Multibagger IPO turns 13,500 to 1.35 lakh in six years

1:1 bonus share, 1:10 stock split: A long term investor not just earns from the stock price appreciation but from other rewards as well that a listed company declares from its reserved capital. This reward could be dividend, bonus shares, stock split, etc. These rewards may not look big in short term but over a period of years, these rewards multifold one's return that leads to whopping return for a long term investors.

To understand the value of long term investing and these rewards, one needs to look at Salasar Techno Engineering shares. This main board initial public offering (IPO). Salasar Techno IPO was launched in July 2023 at 108 per share. A bidder was allowed to apply in lots and one lot of the IPO comprised 125 company shares. After listing on BSE and NSE, the stock has traded ex-bonus for issuance of 1:1 shares and ex-split for 1:10 stock subdivision.

Salasar Techno bonus share history

As per the information available on BSE website, Salasar Techno shares traded ex-bonus on 13th July 2021 for finalising the beneficiary shareholders of the company for issuance of bonus shares in 1:1 ratio. Means, a long term investor was awarded one bonus share for every one stock he was holding on bonus share record date.

Salasar Techno stock split history

As per the information available on the official website of BSE, Salasar Techno Engineering shares traded ex-split on 27th June 2022 for stock subdivision in 1:10 ratio. This means, stock split beneficiary shareholders' shareholding in the company surged 10 times after the stock split.

Bonus share, stock split impact

As mentioned above, an allottee's shareholding in the company would have been 125 shares at the time of Salasar Techno Engineering share listing. After 1:1 bonus shares, this shareholding went up to 250 shares ( 125 x 20). This shareholding further went higher at 2,500 9rS 250 X 10).

13,500 turns to 1.35 lakh in six years

As menitoned above, a retail investor was allowed to invest in Salasar Techno Engineering IPO in lots and one lot of the stock comprised 125 shares. As the public issue was priced at 108 apiece, minimum investment required to apply for the IPO was 13,500 ( 108 x 125).

Salasar Techno Engineering share price today is around 54.30, absolute value of 13,500 could have become 1,35,750 or 1.35 lakh today, provided an allottee of the stock had remained invested in the stock till date.

Salasar Techno news

Salasar Techno Engineering Ltd, engaged in manufacturing of large & heavy steel structures, and providing customized steel structures and EPC solutions to diverse range of industries including telecom, power, railways and others has bagged an EPC contract worth $ 9.40 Mn from Energy Development CorporaHon Limited for setting up of 110kv transmission line.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 18 Sep 2023, 03:28 PM IST
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