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Business News/ Markets / Stock Markets/  1:4 bonus shares effect: Multibagger BSE SME IPO turns 1.20 lakh to 14.80 lakh in 11-year
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1:4 bonus shares effect: Multibagger BSE SME IPO turns ₹1.20 lakh to ₹14.80 lakh in 11-year

Multibagger SME IPO was launched in July 2013 at a fixed price of ₹15 per equity share

Bonus shares: Multibagger BSE SME IPO listed at premium of over 8% but it traded ex-bonus on 13th November 2017 in 1:4 ratio. (Photo: iStock)Premium
Bonus shares: Multibagger BSE SME IPO listed at premium of over 8% but it traded ex-bonus on 13th November 2017 in 1:4 ratio. (Photo: iStock)

1:4 bonus shares effect: A long-term share investor not only benefits from stock price appreciation but also from other rewards that a listed company announces over time from its capital reserves. These rewards, such as dividends, bonus shares, buyback of shares, rights issues, etc., can significantly enhance one's returns. For those seeking to understand the impact of these long-term rewards on their investment, the journey of Money Masters Leasing and Finance shares is a testament to the potential for substantial returns.

Money Masters Leasing and Finance share price history

Money Masters Leasing and Finance IPO, which was launched in July 2013, was a resounding success. The SME IPO was proposed for listing on the BSE SME Exchange and was offered at a fixed price of 15 apiece. The BSE SME stock was listed on 12th August 2013 at 16.25 apiece, delivering over 8 per cent return to the lucky allottees. This success story is a testament to the potential of long-term investments in Money Masters Leasing and Finance shares.

1:4 bonus shares

The SME company later declared bonus shares for its shareholders in 2027. This move, significant in the context of Money Masters Leasing and Finance, was a testament to the company's growth and its commitment to rewarding its long-term investors. According to the information available on the official BSE website, the SME stock traded ex-bonus on November 13, 2017, to ascertain the list of eligible shareholders for issuance of bonus shares in a 1:4 ratio. This means one bonus share for every four shares held on the bonus shares record date.

So, if a lucky allottee had remained invested with the SME stock after successful listing, its shareholding would have surged from 8,000 to 10,000 [8,000 x {(1+4)/4}]. This increase in shareholding not only reflects the company's growth but also the potential growth of the investor's portfolio.

1.20 lakh turns to 14.80 lakh

As Money Masters Leasing and Finance's share price today is around 148, if a lucky allottee had remained invested in this SME IPO to date, the absolute value of one's investment would have been 14.80 lakh. This significant increase in value underscores the potential rewards of long-term investment in Money Masters Leasing and Finance shares.

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
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Published: 07 Jun 2024, 03:23 PM IST
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