The TCS IPO, launched 20 years ago, has turned an initial investment of ₹5,950 into a staggering ₹1.27 lakh, demonstrating the power of long-term investment in the stock market.
The Journey of Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) went public in July 2004, listing its shares on the BSE and NSE on August 25, 2004. The IPO was priced at ₹850 per share, with a minimum investment of ₹5,950 for seven shares. Today, TCS shares trade at around ₹4,550 each on the NSE.
The Impact of Bonus Shares
TCS has declared bonus shares twice since its IPO. The first was in June 2009, when TCS issued 1:1 bonus shares, meaning for every share held, investors received an additional share. The second bonus was issued in May 2018, again in a 1:1 ratio. Due to these bonuses, an investor who initially received seven shares would now hold 28 shares.
Value of Investment Today
With the current share price of around ₹4,550, the initial investment of ₹5,950 has grown to ₹1,27,400. This shows how holding onto a strong stock over the long term can lead to significant wealth creation.
The TCS story illustrates that the real value in the stock market comes from patience and long-term commitment, especially when investing in companies with solid business prospects. By holding onto shares through market ups and downs, investors can benefit not only from price appreciation but also from dividends, bonuses, and other rewards that contribute to wealth compounding over time.
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