Home / Markets / Stock Markets /  Bonus shares 4 times: PSU stock turns 1 lakh to 2.77 crore in 22 years

Bonus shares: Bharat Petroleum Corporation Ltd or BPCL share price history may not look attractive on chart but when you look at its bonus share history, then a smart investor would understand how this PSU company has remained a money making stock for its long term investors. In last 22 years, BPCL share price has ascended from 13.50 to 311.60 apiece levels, but when we add bonus share impact during these 22 years, we come to know that one's 1 lakh invested 22 years ago would have turned to 2.77 crore today.

BPCL bonus share history

Since 2000, BPCL has given bonus shares on four occasions — December 2000, July 2012, July 2016 and July 2017. In December 2000, July 2012 and July 2016, BPCL announced bonus shares to its shareholders in 1:1 ratio means one bonus share for each paid up capital held by the shareholders. But, in July 2017, BPCL announced 1:2 bonus shares, which means one bonus share for each two equity shares held by the shareholder of the PSU company.

Bonus share impact

BPCL shares were available at 13.50 apiece levels in May 2000. If an investor had invested 1 lakh in BPCL shares, it would have got 7,407 BPCL shares. After 1:1 bonus issue in December 2000, the total number of shares would have doubled to 14,814. This would have further doubled to 29,628 after 1:1 bonus share issuance in July 2012. After 1:1 bonus share issue in July 2016, one's BPCL shareholding would have further doubled to 59,256. In July 2017, BPCL gave bonus shares in 1:2 ratio. Thus one's shareholding would have jumped to 88,884.

1 lakh turns to 2.77 crore

BPCL share price today is quoting 311.60 apiece. Hence, if an investor had invested 1 lakh in BPCL shares 22 years ago buying one stock at 13.50 apiece levels, one's total BPCL shares today in its demat account would have grown to 88,884. Hence, absolute value of 1 lakh invested 22 years ago would have been around 2.77 crore, provided the investor had remained invested in the stock throughout the period mentioned above.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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