Three 1:2 Bonus Shares: A long term stock market investor gets various rewards apart from increase in share price as listed entities declare various concessions like bonus shares, interim or final dividend, buyback of shares at higher premium, rights issue etc. Listed companies from their reserve capital. To understand how these rewards can impact one’s long term returns, one needs to look at the Varun Beverages IPO journey.
This multibagger IPO was launched in October 2016 at a price band of from 440 445 per equity share. One big Varun Beverages The IPO consisted of 33 shares of the company, which was the minimum investment amount for a lucky allottee 14,685 ( 4445 x 33). This means, after finalization of share allotment an allottee would have got minimum 33 shares of Varun Beverages.
Varun Beverages Bonus Share History
As per the information available on the official BSE Website – bseindia.com, Varun Beverages Limited announced three times bonus shares after getting listed on BSE and NSE. On all the three occasions, Varun Beverages announced the issue of bonus shares in the ratio 1:2, which means one bonus share for every two shares held by the eligible shareholder. After getting listed on BSE and NSE in November 2016, shares of Varun Beverages will trade ex-bonus on July 25, 2019, June 10, 2021 and June 6, 2022, respectively.
bonus share effect
Had a lucky allottee remained invested in Varun Beverages post allotment, his holding in Varun Beverages would have increased to 109 (33 + 16 + 24 + 36) today after these three 1:2 bonus shares. And this increase in the stake of that long-term investor would have happened without any further investment.
Check below the complete calculation of Bonus Shares:
- Shares of Varun Beverages after allotment: 33
- Total shares after first 1:2 bonus share: 33 + (33-1)/2 = 49
- Total shares after second 1:2 bonus share: 49 + (49-1)/2 = 73
- Total shares after 3rd 1:2 bonus share: 73 + (73-1)/2 = 109
turns into 14,685 1.58 lakh
Therefore, after the issue of three 1:2 bonus shares, the total shareholding of the lucky allottee would have increased to 109 shares. Varun Beverages share price is around today 1,450 each.
Therefore, the absolute value of any becomes 14,685 1.58 Lakh ( 14,685 x 1,450) today.
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