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Business News/ Markets / Stock Markets/  1:2 bonus shares, 1:10 stock split: BSE SME IPO turns 1.28 lakh to 8.76 lakh in nine years
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1:2 bonus shares, 1:10 stock split: BSE SME IPO turns ₹1.28 lakh to ₹8.76 lakh in nine years

Multibagger IPO: The BSE SME issue was launced in June 2015 at a fixed price of ₹16 per equity share

Multibagger IPO: One lot of the SME IPO comprised 8,000 company shares.Premium
Multibagger IPO: One lot of the SME IPO comprised 8,000 company shares.

Multibagger IPO: A long-term stock market investor does not just earn from the appreciation in stock price appreciation but from the various other rewards that a listed company declares from its capital reserves. These rewards can be in the form of an interim, final, or special dividend, bonus shares, stock split, buyback of shares, etc. Prima facie, these rewards may look negligible but in the longer term, these rewards matter a lot and lead to whopping returns. This rule applies to both primary and secondary markets.

To understand how these rewards impact one's returns, we need to look at the Garment Mantra Lifestyle shares. The initial public offering (IPO) of Garment Mantra Lifestyle Ltd was launched in June 2015 at a fixed price of 16 apiece. 

Also Read: Yes Bank shares rebound after retracing over 20% from 52-week high. Buy or wait?

The lot size of this BSE SME IPO comprised 8,000 company shares, which means the minimum money required to apply for this SME IPO was 1.28 lakh ( 16 x 8,000). If an allottee had remained invested in this SME stock despite strong listing, one would have enjoyed some other benefits like stock split and bonus shares that the SME company announced in 2022 and 2020 respectively.

Garment Mantra Lifestyle bonus shares history

As per the information available on the BSE website, the SME stock traded ex-bonus on 30th March 2020 after declaring bonus shares in a 1:2 ratio. This means Garment Mantra Lifestyle shareholders who held this SME stock on the bonus share record date, were awarded one bonus share for every two shares they held.

Also Read: GPT Healthcare IPO: GMP, review, subscription, other details. Apply or not?

Garment Mantra Lifestyle stock split history

According to the information available on the BSE website, this SME stock traded ex-split on 18th May 2022. The SME company had declared a stock split in a 1:10 ratio. This means an eligible shareholder's shareholding surged 10 times after the stock subdivision.

Impact on shareholders

As mentioned above, a lucky allottee's shareholding in the company would have surged to 12,000 after the issuance of 1:2 bonus shares [8,000 x {(1 + 2) / 2}]. These 12,000 shares would have further surged to 1,20,000 (12,000 x 10) after a 1:10 stock split.

1.28 lakh turns to 8.76 lakh

The SME IPO was launched at 16 per equity share and the lot size of the SME IPO was 8,000. The minimum investment of an allottee would have been ( 16 x 8,000). Garment Mantra Lifestyle share price today is 7.30 apiece. So, if an investor had remained invested in this SME stock despite strong upside post-listing, one's 1.28 lakh would have turned to 8.76 lakh ( 7.30 x 1,20,000).

Garment Mantra Lifestyle news

Garment Mantra Lifestyle Ltd recently announced that it is setting up a New Wholesale Hub in Surat, to efficiently cover big customers and commission agents from the western, northern, and central regions of the country. The company strategically joined hands with reputed business houses of Surat to efficiently cover big customers and the commission agents from the western, northern, and central regions of the Country. Business houses with whom, we as a group accompanying have been in the textile business for decades and carry a good set of wholesale customers in their bouquet. This strategic tie-up will be beneficial for both sides as we will bet on our core strength i.e. production and supply chain and the other parties will take care of Sales and Marketing

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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ABOUT THE AUTHOR
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: 22 Feb 2024, 01:28 PM IST
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