Effect of Bonus Shares: A long-term share investor not only benefits from appreciation in share price but also from other rewards that a listed company declares over time from its capital reserves. Dividend, bonus shares, buyback of shares, rights issue etc. are some of the major advantages that a long term share investor gets over short term investors. These rewards multiply the returns of the individual. Those wishing to know how these long term rewards impact one’s investments need to look at Bharat Petroleum Corporation Limited or BPCL share price history.
The Navratna company has been paying regular dividends to its shareholders while it has declared bonus shares on four occasions since 2000. So if an investor has invested in the shares of this state-owned company, then due to these four bonus shares, his 1 lakh would have been over 2 crores today.
bpcl bonus share history
as per the information available on BSE websiteBPCL has declared bonus shares in 2000, 2012, 2016 and 2017 respectively. The shares of BPCL traded ex-bonus on 20 December 2000 for issue of bonus shares in the ratio of 1:1. Similarly, it did the ex-bonus business of issuing bonus shares in the ratio of 1:1 on July 13, 2012 and July 13, 2016. Again on 13 July 2017, the shares of BPCL traded ex-bonus to issue bonus shares in the ratio of 1:2.
effect of bonus shares
Due to the first three 1:1 bonus shares, a long-term investor WHO Had it invested in BPCL shares in early 2000, its shareholding would have gone up to 8 times (2 x 2 x 2). Later, in 2017, the Navratna company declared 1:2 bonus shares, which means that the shareholding increased by 50 percent as the company issued one bonus share for every two shares held by the shareholder. Therefore, the investor’s shareholding becomes 12 times (8 x 1.5).
bpcl share price history
The share price of BPCL in early 2000 was around 20 each. If an investor had invested 1 lakh in BPCL shares, he would have got 5,000 shares of BPCL. These 5,000 shares will be worth 12 times after the four bonus shares discussed above.
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This means that after the issue of bonus shares in 2000, 2012, 2016 and 2017, the total number of BPCL shares in one’s demat account would have gone up to 60,000.
becomes 1 lakh 2 crores
BPCL share price is around today 335 per share. it means, the full value of any becomes 1 lakh 2.01 crores in these 23 years.
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