3:10 bonus shares, 1:5 stock split effect: Multibagger SME IPO turns ₹1.10 lk of allottees to ₹7.34 lk in 6 years

AKI India Ltd share price has delivered exceptional long-term returns to investors despite currently trading near its IPO price of ₹11.29. The company's strategic corporate actions, including a 3:10 bonus issue and a 1:5 stock split, have significantly multiplied the number of shares held by investors, making it a multibagger in the true sense. These corporate developments have resulted in sixfold growth in shareholding, delivering overwhelming returns to early investors.

An investor who participated in the SME IPO at ₹11 per share with a lot size of 10,000 shares would have seen their holding surge to 13,000 shares after the 3:10 bonus issue in 2022. This number further increased to 65,000 shares following the 1:5 stock split in 2023. Despite the stock price hovering around its IPO level, the absolute value of the initial investment of ₹1.10 lakh has ballooned to ₹7,33,850 today, based on the latest trading price of ₹11.29 per share.

A Look Back at AKI India’s IPO and Market Debut

The AKI India IPO, valued at ₹3.08 crore, was open for subscription from September 28 to October 5, 2018. The issue was priced at ₹11 per share and was entirely a fresh issue, with 0.27 crore equity shares offered to investors. There was no offer-for-sale component, meaning all proceeds were used for the company’s growth initiatives.

Stock Price Performance: Volatility Amid Long-Term Gains

While AKI India has created substantial wealth for its early investors, its stock price has witnessed significant fluctuations over the past year. The stock rallied over 7 percent to ₹11.29 in today’s session. However, it remains 62 percent below its 52-week high of ₹29.90, which was recorded in February 2024. On the other hand, it has shown a 21 percent recovery from its 52-week low of ₹9.30, hit in January 2025.

Over the past year, the stock has declined by 63 percent, facing consistent selling pressure. The weakness extended into January 2024, with the stock losing 21 percent, marking its seventh consecutive month of decline. Despite these short-term challenges, the company’s corporate actions and shareholding expansion have cushioned early investors from significant losses.

Financial Performance: Profit Growth Despite Declining Revenue

AKI India reported a decline in revenue but an improvement in profitability in its Q2 FY25 earnings report. The company’s revenue dropped by 13.6 percent year-on-year to ₹15.31 crore and also saw a 29.54 percent decline on a sequential basis. However, net profit stood at ₹0.48 crore, marking a significant jump from ₹0.19 crore in the year-ago period. This suggests that while the company is facing top-line pressures, its cost management and operational efficiencies have helped maintain profitability growth.

SKI India’s Business Model and Market Presence

Founded in 1994 and headquartered in Kanpur, India, AKI India specializes in designing, manufacturing, and selling leather and leather-based products both in domestic and international markets. The company operates through its subsidiary AKI UK Limited, further strengthening its global presence.

Its product portfolio is diverse, covering a range of leather accessories, including wallets, cardholders, and belts. It also manufactures leather bags, such as duffel bags, tote bags, briefcases, and backpacks. In the footwear segment, the company offers formal shoes, riding boots, casual shoes, and countryside boots. Additionally, SKI India produces pet accessories like dog toys, collars, and leads, as well as equestrian products such as horse covers, bridles, and harness sets. Apart from finished leather products, it is also involved in the distribution of leather chemicals.