2:1 bonus share effect: ₹1 lakh turns into ₹11.82 crore in 10 years

Bonus Shares: Apart from appreciation in the stock price, a long-term investor gets some additional benefits from its value selection such as interim or final dividends, buyback of shares, bonus shares, stock splits, spin offs, etc. These additional benefits are what it shares with a listed company. its loyal long-term investors from the company’s quarterly or annual earnings.

To understand how these rewards pay off in the long run, we need to look at Jyoti Resins & Adhesives Ltd. shares. This small-cap chemical stock has recently issued bonus shares in the ratio of 2:1, which means the company has issued two bonus shares. to its eligible shareholders for each share owned by them. On account of issue of these bonus shares, any 1 lakh invested a decade ago turned into 11.82 crores.

Jyoti Resins share price history

Jyoti Resins is one of the multibagger stocks indian stock market produced in the last one year. This small-cap chemical stock has grown all around since 535 1281.50 level in the last one year, giving a return of 140 per cent to its shareholders. In the last five years, the stock of this chemical has increased from all sides. from 22.55 1281.50 per share level, logging 5,600 per cent returns in this time.

Similarly, this small-cap multibagger stock has bounced around in the past decade 3.25 to each level 1281.50 per share level, a rise of 39,300 per cent in this time. However, there is a catch in Jyoti Resins’ share price history.

Jyoti Resin Bonus Share History

As per the information available on the official BSE Website – bseindia.com This multibagger stock traded ex-bonus for issue of bonus shares in the ratio of 2:1 on Sep 8, 2022. It means that the small-cap chemical company has given two bonus shares for one share held by the shareholders of this company.

effect on shareholding

if someone had invested 1 lakh in this multibagger stock 10 years ago, buy a share 3.25 each. one would have got 30,769 Flame Resin shares in one’s demat account. After the issue of 2:1 bonus shares, these 30,769 shares would have increased to 92,307 shares of the company.

becomes 1 lakh 11.82 crores

The share price of Jyoti Resins ended last week on Friday. 1281.50 each. So, if an investor had invested 1 lakh in this multibagger chemical stock 10 years ago, then the full value of any becomes 1 lakh 11,82,91,420.5 or thereabouts 11.82 crores.

If no 2:1 bonus share had been declared, then becomes 1 lakh 3,94,30,769 or 3.94 crores in the last 10 years.


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