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Business News/ Markets / Stock Markets/  1:5 bonus shares: Multibagger SME IPO turns 1.20 lakh to 3.93 lakh in seven years
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1:5 bonus shares: Multibagger SME IPO turns ₹1.20 lakh to ₹3.93 lakh in seven years

Multibagger IPO: SME issue was launched at ₹15 per share with a lot size of 8,000 company shares

SME stock traded ex-bonus in Octover 2018 for issuance of bonus shares in 1:5 ratio. (Bloomberg)Premium
SME stock traded ex-bonus in Octover 2018 for issuance of bonus shares in 1:5 ratio. (Bloomberg)

Multibagger IPO: Investing in stocks or public issue is like investing in a business and one should hold a stock as long as one can. According American billionaire and ace investor Charlie Munger, moeny is not in buying and selling of stock but in hold. The Vice Chairman of Berkshire Hathaway wants to convey that equity investment is for long term and one should hold one's position for long term after being satishfied with the busines model and its sustained business after scanning its financials.

For those, who want to understand the value of being a long term stock investor, one needs to look at Shashijit Infraprojects IPO. The public issue worth 3.49 crore was launched in September 2023 and it was proposed for listing on BSE SME exchange. The SME stock listed on BSE in October. The fixed issue was offered at a price of 15 per share and lot size of the IPO comprised 8,000 company shares. So, a retail investor had to invest at least 1,20,000 ( 15 x 8,000) while applying for the SME IPO.

Also read: Small-cap FMCG stock hits upper circuit on third day in a row. Do you own?

The SME IPO listed on BSE at 15.85 per share levels, delivering around 5.50 per cent listing gain to the lucky allottees. However, if an allottee had remained invested in this small-cap stock till date, despite postive listing it should have benefited from 1:5 bonus shares that the company declared in October 2018.

Shashijit Infraprojects bonus share history

As per the information available on official BSE website —, the small-cap SME stock traded ex-bonus on 12th October 2018 to find out eligible shareholders for issuance of bonus shares in 1:5 ratio. This means, one bonus shares were rewarded for every five shareholding of the company.

Click here to read: Multibagger IPO turns 13,500 to 1.35 lakh in six years

So, if an allottee hnad remained invested in the SME stock till date, its total number of shares would have appreciated to 9,600 [{8,000 x (1+5)} / 5].

1.20 lakh turns to 3.93 lakh today

As mentioned above, one share of the SME IPO was offered at 15 and Shashijit Infraprojects IPO lot size comprised 8,000 shares. Minimum investment in this BSE SME IPO rewquired 1.20 lakh. Shashijit Infraprojects share price today is around 41.

So, if the investor had remained invested in this SME stock till date after listing, its 1.20 lakh would have turned to 3,93,600 ( 41 x 9,600).

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
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: 20 Sep 2023, 03:06 PM IST
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