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Business News/ Markets / Stock Markets/  6:1 bonus shares effect: Multibagger BSE SME IPO turns 1.27 lakh to 11.81 lakh in three years

6:1 bonus shares effect: Multibagger BSE SME IPO turns ₹1.27 lakh to ₹11.81 lakh in three years

  • Multibagger SME IPO had a flat listing on BSE SME platform on 14th October 2020

SME stock traded ex-bonus on 4th January 2023 for finalising eligible shareholders for issuance bonus shares in 6:1 ratio.

6:1 bonus shares effect: A long-term share investor benefits from stock price appreciation and 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 G M Polyplast share price is a testament to the potential for substantial returns.

G M Polyplast share price history

G M Polyplast IPO was launched in October 2020, and the public issue was proposed for listing on the BSE SME platform. The SME IPO was launched at a fixed price of 159, and the fixed issue had a flat listing on the BSE SME platform. However, after a flat debut, the SME stock witnessed a substantial upside that actuated the company promoters to declare bonus shares in a 6:1 ratio. This means six bonus shares were rewarded as a bonus to the eligible shareholders of the company. The SME stock traded ex-bonus on 4th January 2023, which means the stock was traded without the rights to bonus shares. A bidder was allowed to invest in lots, and one lot of the stock comprised 800 company shares. If an allottee had remained invested in the SME stock despite flat listing, its shareholding would have surged to 5600 [800 x {(6+1)/1}].

1.27 lakh turns to 44.81 lakh in three years

One G M Polyplast IPO log comprised 800 shares, and the public issue was offered at 159 per share. The minimum amount required to invest in this multibagger BSE SME IPO was 1,27,200 ( 159 x 800). After 6:1 bonus shares, the net shareholding of an allotee would have surged to 5600. Today, G M Polyplast share price touched an intraday high of 211 per share. So, if an allottee had remained invested in this SME IPO despite flat listing, its 1,27,200 lakh would have turned to 11,81,600.

G M Polyplast news

G M Polyplast shares were in the news as the SME stock moved to the main board on Monday this week. The company informed about the news saying, “The board approved the migration from BSE SME to the main Board of the Bombay Stock Exchange and National Stock Exchange. This move is significant as it can potentially increase the visibility and liquidity of the company's shares, which could be beneficial for the shareholders. The Managing Director and/or Company Secretary and Compliance officer were authorized for allied matters thereon, subject to the approval of the Members."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not 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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