1:10 stock split effect: SME IPO turns ₹1.20 lakh into ₹21.90 lakh in 9-year

Investing in stocks is like investing in a business, and it pays to hold onto your stocks for as long as possible. This applies to both primary and secondary market investors. Long-term investors not only benefit from stock price growth but also from rewards that companies announce over time, like bonus shares, share buybacks, stock splits, and dividends. While these rewards might not seem significant initially, they can greatly boost your investment in the long run.

Let’s take a look at the journey of Thinkink Picturez shares to understand how these rewards can impact your investment. Originally listed as Oyeeee Media Ltd or OML, the company launched its public issue in August 2015 at ₹40 per share. The issue was for listing on the BSE SME exchange, and the minimum investment required was ₹1.20 lakh for one lot of 3,000 company shares.

After listing in September 2015, the SME stock took some time to gain momentum but became an attractive option for long-term investors from December 2017 onwards. In 2018, the company declared a 1:10 stock split. So, if an investor had stayed invested in this SME stock from the beginning, their shareholding would have increased to 30,000 shares (3,000 x 10).

As of today, Thinkink Picturez share price is ₹73 on BSE. If an investor had held onto the shares until now, the initial ₹1.20 lakh investment would have turned into ₹21.90 lakh (₹73 x 30,000). However, this remarkable growth would only be possible if the investor had remained continuously invested in the SME stock.

Thinkink Picturez Limited recently unveiled its latest film, “Vicky Vidya ka Woh Wala Video,” featuring top actors like Rajkumar Rao, Tripti Dimri, Mallika Sherawat, and Vijay Raaj. This blockbuster has the potential to be a game-changer for the company and a lucrative opportunity for investors.