Multibagger Bonus Shares: A long-term investor not only reaps the benefits of an increase in share price. They get the benefit of various rewards that a listed company declares from time to time from its capital reserves. These awards may be in the form of interim or final dividends, bonus shares, stock splits, buyback of shares, etc. These rewards may seem small at the time of announcement, but it turns out to be a huge catalyst for boosting returns for long-term investors. The period of time. Shares of EKI Energy Services are a great example of this. It is one of the SME stock multibagger stock and IPOs that the Indian stock market has made over the years.
This Multibagger SME Stock was listed on BSE SME Exchange in April 2023 and has risen by 1,150 per cent in the last two years. However, if we consider the 3:1 bonus shares announced by SME Stock in July 2022, the net return given by this multibagger IPO to its allottees in the last two years is over 1,900 per cent in this time.
EKI Energy Services share price history
EKI Energy Services IPO was launched in April 2021 and is listed on BSE SME Exchange on 7th April 2021. The price band of the public issue was offered at from 100 102 per equity share and the SME IPO’s lot size consisted of 1200 company shares. If an allottee had stayed invested in this SME IPO till date, he would have got the benefit of 3:1 bonus shares, i.e. 3 additional bonus shares for every share held, thereby increasing the shareholding of the allottee by four times. This means that the shareholding of the allottees in EKI Energy Services would have increased from 1200 to 4800 (1200 x 4).
impact on investment
As the share price of EKI Energy Services is today 512.75 per share and one’s shareholding at 4800 shares, the full value of one’s investment in EKI Energy Services would have gone up 24,61,200.
This time Multibagger SME IPO Launch, a retail investor had to invest 1,22,400 ( 102 x 1200) to apply for SME IPO. It means, the net investment of an allottee was 1,22,400 and if the allottee had invested in this SME IPO till date, the absolute value of one’s investment would have gone up to Rs. 24,61,200, an increase of over 1900 per cent in the last two years.
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