1:2 stock split effect: NSE listed SME IT stock turns ₹1.26 lakh to ₹8.79 lakh in seven years
- SME IT stock was launched in the primary market at ₹42 per equity share
1:2 stock split effect: As Rome was not built in a day, a stock market investor can't become rich overnight. It is often said that money is not in buying and selling stocks but in waiting. This rule also applies to an IPO (Initial Public Offering) investor. If an investor IPO is convinced about a company's business prospects, then irrespective of size, one should stick with one's conviction and hold the stock as long as possible.
An IPO investor is advised to keep the scrip as long as possible to create wealth on the premium that promoters of the company have offered to its investors in the primary market. So, by holding a stock for a long term after share allocation, an allottee enjoys the benefit of wealth creation. By having a stock for the long term, they want the benefit of various other rewards like dividends, bonus shares, stock splits, buybacks of shares, etc., which helps an IPO allottee in wealth compounding.
To truly grasp the potential for wealth creation through long-term investment, let's delve into the inspiring journey of Dev Information Technologies (IT) IPO. The NSE SME IPO was launched in March 2017 at a fixed price of ₹42 apiece. A bidder was allowed to apply for the NSE SME IPO in lots, and one lot of this SME IPO comprised 3000 company shares. So, the minimum amount required to apply for the SME IPO was ₹1,26,000 ( ₹42 x 3000).
Dev IT shares listed on the NSE SME Emerge platform on 17th April 2017. The SME stock listed on NSE at ₹50.40 apiece, delivering a 20 percent listing gain to the lucky allottees. However, if an investor had remained invested in the SME stock despite the strong debut on Dalal Street, which is a metonym for the Indian stock market, one would have been thrilled to enjoy a whopping wealth generation opportunity provided by this IT stock.
Dev IT stock split history
As per the information on BSE and NSE, the SME stock traded ex-split on 25th November 2022 for a stock split in a 1:2 ratio. 'Ex-split' means that the stock is trading without the value of the split. So, if an allottee had remained invested in the scrip to date, its shareholding would have doubled after the stock split, i.e. an allottee's shareholding would have surged to 6000 (3000 x 2).
₹1.26 lakh turns to ₹8.79 lakh
Dev IT's share price today surged to an intraday high of ₹146.50. Taking this as the last reference point for this SME IT stock, if an allottee had remained invested in this SME IT stock until date despite its strong debut, the absolute value of one's ₹1.26 lakh would have turned to ₹8.79 lakh ( ₹146.50 x 6000).
Dev IT news
The SME IT stock was recently in news for securing order for “Selection of Agency for Study, Design, Development and Implementation of Kaushal Darpan Portal & Application”.
Recently, the company secured work orders towards providing SQL Server Enterprise & Windows Server for further enabling Gujarat Chief Minister Office’s Dashboard Application and various other key software solution applications specific to quite a few other Departments of the Gujarat Government hosted in Gujarat State Data Centre.
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 making any investment decisions.
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