Jyoti Resins and Adhesives stock is one of India’s multibagger stocks. The recent ex-bonus trading of this multi-bagger chemical stock was the cherry on top for the company’s long-term owners. For the first time, the chemical stock issued bonus shares in a 2:1 ratio, or two bonus shares for every share that a shareholder owned. This chemical stock has increased more than 6,500% in the previous five years, from a price of ₹25 to a price of ₹1,656 per.
In August 2022, the chemical company informed Indian stock market exchanges about the revised bonus shares record date citing, “We are submitting the revised intimation of record date of bonus shares, due to some clerical error in the previous intimation submitted. Pursuant to Regulation 42 of the SEBI ( Listing Obligations and Disclosure Requirements ) Regulations 2015, the company has fixed Friday 09th September, 2022 as the Record Date for the purpose of ascertaining the eligibility of shareholders entitled for issue of Bonus Equity Shares of the company in the proportion of (Two) Equity Share of Rs.10/- each for every (One) Equity shares of Rs.10/- each.” So, the multibagger chemical stock has traded ex-bonus on 8th September 2022.
If five years ago, an investor had put one lakh rupees into this multibagger stock. 4,000 shares would have been awarded to it because the stock was trading at ₹25 per share. After the 2:1 bonus share issuance, these 4,000 stocks gained an extra 8,000 stocks as the shareholders received two bonus shares for every share they owned. As a result, the investor’s net ownership (4,000 + 8,000) would have reached 12,000.
₹1 Lakh Turns to ₹2 Crore
As of Wednesday’s closing price of ₹1,656.05 per share on the NSE, the shareholder’s net value of one lakh would have been ₹1.98 crore (₹1,656.05 X 12,000 shares). However, the firm has also paid dividends to its stockholders during the previous five years. Therefore, if these dividends were added to this ₹1.98 crore, it would equal about ₹2 crore.
This multibagger stock closed on Wednesday with a market valuation of ₹1,987 crore. The final trade volume for the BSE-listed stock on Wednesday was 28,367, which is less than the 36,955 average transaction volume for the previous 20 days.