2:3 bonus shares, 1:10 stock split: Multibagger BSE SME IPO turns ₹1.08 lakh to ₹2.43 lakh in 10 months

  • Multibagger SME stock traded ex-bonus and ex-split today for issuance of 2:3 bonus shares and 1:10 stock split

Asit Manohar
Updated20 May 2023, 03:26 PM IST
Multibagger BSE SME IPO has delivered 125% return to the lucky allottees in last 10 months.
Multibagger BSE SME IPO has delivered 125% return to the lucky allottees in last 10 months.(iStock)

Multibagger SME IPO: A long term investor not just enjoy the benefit of stock appreciation but from various rewards that a listed company announces from its capital reserves. These rewards include interim or final dividend, bonus shares, stock split, buyback of shares, etc. These benefits may not look big at one glance but for a long term investor these capital reserve awards enable one's money grow many folds. Veerkrupa Jewellers shares are glaring example of it. This multibagger IPO has announced 2:3 bonus shares and 1:10 stock split within 10 months of its listing helping a lucky allottees shareholding grow from 4,000 company shares to 66,660 company shares.

Veerkrupa Jewellers share price history

The public issue of this BSE SME IPO was launched in June 2022 at a price band of 27 per share. A retail investor was allowed to invest in lots and one lot of the Veerkrupa Jewellers IPO comprised 4000 company shares. So, minimum invested of an allottee in this public issue could have been 1.08 lakh ( 27 x 4000). The SME IPO has weak listing on the BSE SME exchange as the scrip listed at 25.65 apiece levels on 18th July 2022. However, if a lucky allottee had remained invested till date in this SME stock despite weak listing, one's 1.08 lakh would have turned to more than 2.43 lakh today, delivering over 125 per cent return to its lucky allottees in the last 10 months.

 

2:3 bonus share impact

After listing on BSE SME exchange on 18th July 2022, this multibagger stock traded ex-bonus on 19th May 2023 i.e. today for issuance of bonus shares in 2:3 ratio. This means, eligible shareholders of the company would get two bonus shares for every three stock held on the record date. Thus, if an allottee had remained invested in the scrip till date, its total shares would have surged from 4000 to 6,666 (4000 + 2666).

1:10 stock split effect

On 19th May 2023 i.e. today, this multibagger SME stock is trading ex-split as well. The board of directors of the company has announced stock split in 1:10 ratio, which means one stock would be subdivided into 10 shares. So, a shareholders total holding would grow 10 times. Hence, 6,666 shares would have further turned to 66,660 company shares, if an allottee had remained invested in this SME scrip.

1.08 lakh turns 2.43 lakh

After issuance of 2:3 bonus shares and 1:10 stock split, Veerkrupa Jewellers share price today after adjustment is quoting 3.65 apiece. So, if an allottee had remained invested in this multibagger SME IPO till date after share allotment, its total shareholding would have grown to 66,660 and absolute value of one's 1.08 lakh would have turned to 2,43,309 or 2.43 lakh today.

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News in Numbers

Numbers that help you understand news better
$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:20 May 2023, 03:26 PM IST
HomeMarketsStock Markets2:3 bonus shares, 1:10 stock split: Multibagger BSE SME IPO turns ₹1.08 lakh to ₹2.43 lakh in 10 months

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