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Business News/ Markets / Stock Markets/  1:10 stock split effect: BSE SME IPO turns 1.20 lakh into 21.90 lakh in nine years

1:10 stock split effect: BSE SME IPO turns ₹1.20 lakh into ₹21.90 lakh in nine years

The BSE SME IPO was launched in August 2015 at a fixed price of ₹40 per equity share

SME stock traded ex-split in 1:10 ratio on 17th April 2018. (Photo: Pixabay)Premium
SME stock traded ex-split in 1:10 ratio on 17th April 2018. (Photo: Pixabay)

Stock split effect: Investing in stocks is like investing in a business. Hence, one should try and hold a stock as long as one can. This rule applies to both primary and secondary market investors. A long-term investor not just earns from stock price appreciation but from various other rewards that a listed entity declares from time to time. These rewards can be in the form of bonus shares, buyback of shares, stock split, interim, special, or final dividend, etc. Prima facie, these rewards may not look lucrative but in the long term, these help your money grow many folds.

To understand how these rewards impact your investment, you need to look at the journey of Thinkink Picturez shares. Originally listed as Oyeeee Media Ltd or OML, the company launched its public issue in August 2015 at a fixed price of 40 apiece. The fixed price issue was proposed for listing on the BSE SME exchange. A bidder was allowed to apply for the SME IPO in lots and one lot of the SME IPO comprised 3,000 company shares. So, minimum investment required to apply for the SME IPO was 1.20 lakh ( 40 x 3,000).

Also Read: Multibagger stock below 100 hits upper circuit after receiving RIL order

Stock split effect

After listing on 4th September 2015, the SME stock remained in base building mode till December 2017. However, from there onwards, this SME stock has remained an ideal buy-on-a-dip stock for long-term investors. In 2018, the SME stock traded ex-split on 17th April as the company had declared a 1:10 stock split. So, if an allottee had remained invested in this SME stock after listing, its shareholding in the scrip would have surged to 30,000 (3,000 x 10).

1.20 lakh turns to 21.90 lakh

Thinkink Picturez share price today is 73 apiece on BSE. So, if an allottee had remained invested in this scrip to date, the absolute value of one's 1.20 lakh would have turned to 21.90 lakh ( 73 x 30,000). However, this could have become possible only when the allottee had remained invested in the SME stock till today without any interruption.

Thinkink Picturez news

Thinkink Picturez Limited has pulled back the curtains on its latest magnum opus, "Vicky Vidya ka Woh Wala Video." With an ensemble cast featuring A-listers Rajkumar Rao, Tripti Dimri, Mallika Sherawat, and Vijay Raaj, this cinematic extravaganza is poised to be a game-changer for the company and a potential goldmine for investors.

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

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 05 Mar 2024, 03:28 PM IST
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