Multibagger IPO: Shanti Educational Share Price Turns ₹1.44 Lakh into ₹14.42 Lakh – A Stock Market Success Story

A stock market investor can’t become rich overnight, just like Rome wasn’t built in a day. It’s often said that money isn’t in buying and selling stocks but in waiting. This rule also applies to IPO (Initial Public Offering) investors. If an IPO investor believes in a company’s business prospects, they should stick with their conviction and hold the stock for as long as possible.

Stock Split

A stock split increases the number of a company’s outstanding shares by dividing each share, which lowers its price. This doesn’t change the company’s market value but makes the stock more affordable for smaller investors.

An IPO investor is advised to hold onto their shares to create wealth from the premium that the company promoters have offered in the primary market. By holding a stock long-term, an investor can enjoy various benefits like dividends, bonus shares, stock splits, and buybacks, which help in wealth compounding.

To understand the potential for wealth creation through long-term investment, let’s look at the journey of Shanti Educational shares. Shares of this company were offered in the Indian primary market in June 2016. The Shanti Educational IPO opened on June 1, 2016, and closed on June 6, 2016. The BSE SME IPO was offered at a fixed price of ₹90 per share. A bidder could apply in lots, and one lot comprised 1600 shares.

The SME stock was listed on the BSE SME exchange on June 14, 2016, at ₹90 apiece but ended at ₹92 on the listing day.

Stock Split History

Despite the initial flat listing, if an investor had stayed invested in the SME stock, they would have seen various wealth creation opportunities. The SME stock saw strong growth over the last eight years. The company declared a 1:10 stock split. So, if an investor had stayed invested, their shares would have increased to 16,000 (1600 x 10) after the stock split on July 21, 2022.

₹1.44 Lakh Turns to ₹14.42 Lakh

The SME IPO was launched at a fixed price of ₹90 per share, with one lot comprising 1600 shares. The minimum investment required was ₹1,44,000 (₹90 x 1600). If an investor had remained invested in this SME stock, their shares would have increased to 16,000 after the 1:10 stock split in 2022. Shanti Educational share price ended on Friday at ₹90.17 on BSE. Thus, the value of the investor’s ₹1.44 lakh would have turned into ₹14,42,720 (₹90.17 x 16,000), or ₹14.42 lakh. This wealth creation from ₹1.44 lakh to ₹14.42 lakh demonstrates the benefits of long-term stock holding and stock splits.

Shanti Educational Q1 Results 2024

The company recently announced its Q1FY25 results, reporting a total income of ₹8.60 crore, 13.30% higher than ₹7.59 crore in Q1FY24. On a QoQ basis, the company reported over a 200% increase in total income from ₹2.86 crore in Q4FY24. The net profit for Q1FY25 was ₹2.76 crore, 18.50% higher than the net profit in the same period last year.