Multibagger SME IPO: A long-term investor not only benefits from stock appreciation but also benefits from various rewards that a listed company declares from its capital reserves. These awards include interim or final dividend, bonus shares, stock split, buyback of shares, etc. These gains may not seem huge at a glance, but for the long term investor these capital reserve rewards enable one’s money to grow manifold. Shares of Veerkripa Jewelers are a prime example of this. This multibagger IPO has announced 2:3 bonus shares and 1:10 stock split within 10 months of its listing, increasing the shareholding of the lucky allottees from 4,000 company shares to 66,660 company shares.
Veerkripa Jewelers shared price history
it’s a public issue BSE SME IPO Launched in June 2022 in the price band of 27 per share. A retail investor was allowed to invest in lots and one lot of Veerkripa Jewelers IPO consisted of 4000 shares of the company. Therefore, the minimum investment by an allottee in this public issue could be 1.08 Lakh ( 27 x 4000). SME IPO listing is weak BSE As SME Exchange Listed Scrip 25.65 level on 18th July 2022. exceeds 1.08 lakhs 2.43 lakh today, giving its lucky allottees a return of over 125 per cent in the last 10 months.
2:3 Bonus Shares Effect
After getting listed on BSE SME exchange on July 18, 2022, this multibagger stock traded ex-bonus to issue bonus shares in 2:3 ratio on May 19, 2023 i.e. today. This means that eligible shareholders of the company will get two bonus shares for every three shares held on the record date. Thus, if an allottee had remained invested in the scrip till date, his total shares would have increased from 4000 to 6,666 (4000 + 2666).
1:10 stock split effect
May 19, 2023 i.e. today this multibagger SME stock is also trading in X-split. The company’s board of directors has announced a stock split in the ratio 1:10, which means that one stock will be divided into 10 shares. So, the total holding of the shareholders will increase by 10 times. Therefore, 6,666 shares would have further converted into 66,660 shares of the company, if an allottee had invested in this SME scrip.
1.08 lakh turns 2.43 lakh
After issuing 2:3 bonus shares and 1:10 stock split, Veerkripa Jewelers share price is trading today after adjustments 3.65 each. Therefore, if any allottee had remained invested in this multibagger SME IPO till the post-allotment date, his total shareholding would have increased to 66,660 and would have been the full value of one’s shares. 1.08 lakh would have been 2,43,309 or 2.43 lakh today.
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