Headline: 6:1 Bonus Shares Boost: Multibagger BSE SME IPO Turns ₹1.27 Lakh into ₹11.81 Lakh in Three Years | Stock Market News

A long-term investor gains not only from rising stock prices but also from various rewards that a company offers over time, like dividends, bonus shares, share buybacks, and rights issues. These rewards can significantly boost returns. The story of G M Polyplast’s stock shows how these long-term rewards can lead to substantial gains.

G M Polyplast Share Price History

G M Polyplast launched its IPO in October 2020 on the BSE SME platform at a fixed price of ₹159. Initially, the stock had a flat debut, but it later saw a significant rise, prompting the company to declare bonus shares in a 6:1 ratio. This means for every share held, six bonus shares were given to eligible shareholders. The stock traded ex-bonus on January 4, 2023, meaning it traded without the rights to bonus shares. An investor could buy in lots of 800 shares. If an investor held onto the stock despite its flat listing, their shareholding would have increased to 5600 shares [800 x {(6+1)/1}].

₹1.27 Lakh Turns into ₹11.81 Lakh in Three Years

One lot of G M Polyplast IPO, comprising 800 shares at ₹159 per share, required an investment of ₹1,27,200. After the 6:1 bonus shares, the shareholding would have increased to 5600 shares. Recently, G M Polyplast’s share price reached an intraday high of ₹211 per share. So, if an investor had stayed invested in this SME IPO despite the flat listing, their ₹1,27,200 investment would now be worth ₹11,81,600.

G M Polyplast News

G M Polyplast made headlines as the SME stock transitioned to the main board this week. The company announced that its board approved the move from the BSE SME to the main Board of the Bombay Stock Exchange and National Stock Exchange. This shift is significant as it can potentially increase the visibility and liquidity of the company’s shares, benefiting shareholders. The Managing Director and/or Company Secretary and Compliance Officer were authorized to handle related matters, subject to members’ approval.