₹3 to ₹2535: Tata stock turns ₹1 lakh to ₹169 crore in 20 years | Mint
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Business News/ Markets / Stock Markets3 to 2535: Tata stock turns 1 lakh to 169 crore in 20 years
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₹3 to ₹2535: Tata stock turns ₹1 lakh to ₹169 crore in 20 years

Multibagger stock: Tata group stock has announced 1:1 bonus shares in June 2011 that halved shareholders input cost

Multibagger stock: This Tata group company announced 10:1 stock split in June 2011, which brought down input cost of its shareholders to 10 per cent of the actual price paid for one share. (HT)Premium
Multibagger stock: This Tata group company announced 10:1 stock split in June 2011, which brought down input cost of its shareholders to 10 per cent of the actual price paid for one share. (HT)

Multibagger stock: A long term stock investor not just gains from the rise in the share price of its portfolio stock. There are various other means of income for a shareholders that helps its money grow even when the stock is not ascending. Announcement of interim dividend, bonus shares and buyback of shares, etc., are such additional means that help a long term stock investors money to grow. However, if the stock grows along with these means, then it becomes an icing on the cake for a stock investors. Titan Company shares are one such stock that has given stellar return to its shareholders and at the same time it has announced bonus shares and stock split as well. Titan shares are one of the multibagger stocks that Indian stock market has delivered in last few years.

Titan share price history

Titan share price has ascended from 3 to 2,535 apiece levels, logging around 845 times in last 20 years. But, its long term investors have not just earned from this stock price appreciation. The company has announced 10:1 stock split and 1:1 bonus share in this period as well. Though, an investor don't earn from stock split but due to the stock split, its number of shares goes up and its input cost goes down. As the Tata group stock announced 10:1 stock split in June 2011, the input cost of the shareholders who had bought Titan shares 20 years ago in August 2002, their input cost went down to 10 per cent of their actual cost.

The Tata group company had announced 1:1 bonus shares as well for its shareholders in June 2011. So, due to the bonus shares issuance, cost price of shareholders who bought Titan shares 20 years ago further went down by 50 per cent. As stock split had already put down their input cost at 10 per cent of the actual cost. Bonus share issue further put down their cost price to 5 per cent of their actual buying level. As they bought one Titan share at 3 apiece, due to 10:1 stock split and 1:1 bonus shares announcement, the actual cost of one share for such investors came down to 0.15 apiece.

Hence, for long term investors who bought Titan Company shares 20 years ago paying 3 per share, their buying cost came down to 0.15 per share due to 10:1 stock split and 1:1 bonus shares announced in June 2011. For such long term investors, Titan share price has ascended from 0.15 to 2,535 apiece levels, logging 16,900 times in last two decades.

Impact on investment

If an investor had invested 1 lakh in Titan Company shares twenty years ago paying 3 apiece, its 1 lakh would have risen 16,900 times ( 2535/ 0.15) turning this 1 lakh to 169 crore in last two decades.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 29 Aug 2022, 09:34 AM IST
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