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Business News/ Markets / Stock Markets/  Multibagger chemical stock turns 1 lakh to 2 crore in 5 years after 2:1 bonus shares
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Multibagger chemical stock turns ₹1 lakh to ₹2 crore in 5 years after 2:1 bonus shares

Multibagger stock: In last 5 years, this chemical share has ascended from ₹25 to ₹1,656 apiece levels

Multibagger stock: ₹1 lakh would have turned to ₹66 lakh if there had been no bonus shares issued by the chemical company. (Bloomberg)Premium
Multibagger stock: 1 lakh would have turned to 66 lakh if there had been no bonus shares issued by the chemical company. (Bloomberg)

Shares of Jyoti Resins and Adhesives are one of the multibagger stocks in India. This multibagger chemical stock recently trade ex-bonus that turned out like icing on the cake for long term shareholders of the company. This was the first occasion when the chemical stock has given bonus shares in 2:1 ratio that means two bonus shares for each shares held by its shareholders. In last five years, this chemical stock has surged from 25 to 1,656 apiece levels, appreciating more than 6,500 per cent in this period.

In August 2022, the chemical company informed Indian stock market exchanges about the revised bonus shares record date citing, "We are submitting the revised intimation of record date of bonus shares, due to some clerical error in the previous intimation submitted. Pursuant to Regulation 42 of the SEBI ( Listing Obligations and Disclosure Requirements ) Regulations 2015, the company has fixed Friday 09th September, 2022 as the Record Date for the purpose of ascertaining the eligibility of shareholders entitled for issue of Bonus Equity Shares of the company in the proportion of (Two) Equity Share of Rs.10/- each for every (One) Equity shares of Rs.10/- each." So, the multibagger chemical stock has traded ex-bonus on 8th September 2022.

Impact of bonus shares on long term investors

If an investor had invested 1 lakh in this multibagger stock five years ago. It would have got 4,000 company shares as the stock was available at 25 apiece. After 2:1 bonus share issue, this 4,000 stocks earned an additional 8,000 stocks as two stocks was awarded as bonus shares for each shares held by the shareholders. Hence, net shareholding of the investor would have gone to 12,000 (4,000 + 8,000).

1 lakh turns to 2 crore

As Jyoti Resins share price finished at 1,656.05 apiece levels on NSE on Wednesday, net worth of the shareholder's 1 lakh would have been 1.98 crore ( 1,656.05 X 12,000). However, the stock has given dividend to its shareholders in last five years as well. So, adding these dividends to this 1.98 crore would come around 2 crore.

On Wednesday, this multibagger stock ended with a market cap of 1,987 crore. The BSE listed stock finished on Wednesday with a trade volume of 28,367, which is below its last 20 days average trade volume of 36,955.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 22 Sep 2022, 07:48 AM IST
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