Long-term stock market investors are reaping substantial benefits, with one NSE SME stock, One Point One Solutions Limited, demonstrating the potential for significant returns over six years through bonus shares and stock splits.
Understanding the Journey:
- One Point One Solutions Limited’s IPO was launched in December 2017 at a price band of ₹65 to ₹67 per equity share.
- The IPO lot size comprised 2,000 company shares.
- Listed on the NSE SME Emerge platform at ₹80.40 apiece, delivering a 20% listing premium.
Additional Benefits Unfold:
- Despite a strong debut, the real gains came from holding onto the stock for the long term.
- In late 2020, the company declared a 1:2 bonus share, meaning eligible shareholders received one bonus share for every two shares held.
- In January 2021, a stock split occurred in a 1:5 ratio, increasing an allottee’s shareholding in the stock fivefold.
Financial Transformation:
- An initial investment of ₹1.34 lakh, if held through these corporate actions, transformed into a significant ₹5.85 lakh in six years.
- As of today, One Point One Solutions share price hit a new 52-week high of ₹39.
- If an allottee remained invested, the absolute value of their investment in the stock would now be ₹5.85 lakh (₹39 x 15,000 shares).
This success story exemplifies the benefits of patience and strategic long-term investment, showcasing how bonus shares and stock splits can substantially enhance the value of an investor’s portfolio over time.
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