Multibagger Stock: A long-term stock market investor not only receives profits from growth in one’s portfolio stocks. The investor benefits from loyalty rewards such as bonus shares, stock splits, buyback of shares, interim and final dividends, etc., declared by a listed company from time to time out of its capital reserves. To understand how an investor benefits from these awards, we need to look at the share price history of Aarti Industries.
Aarti Industries shares are one of the multibagger stocks that Dalal Street has created in recent years. However, the stock has announced two bonus shares over the past decade that have become an investor from 1 lakh 1.55 crores in the last 11 years.
Aarti Industries Bonus Share History
As per the information available on the official BSE Website – bseindia.com, Shares of Aarti Industries has given bonus shares in 2019 and 2021. On both the occasions it declared bonus shares in the ratio of 1:1. On 27 September 2019, the shares of Aarti Industries traded ex-bonus stock to issue bonus shares in the ratio of 1:1. Similarly, this multibagger chemical stock traded ex-bonus for 1:1 bonus share issue on June 22, 2021.
bonus share effect
This means, on both the occasions, Aarti Industries issued one bonus share for every share held by the eligible shareholders of the company. So, after issuing 1:1 bonus shares on two occasions, a beneficiary shareholder Net holding quadrupled without any further Investment,
So, if an investor who had invested in Aarti Industries 11 years back had bought a share of approx. 56 each level (after price adjustment on account of two 1:1 bonus shares it is at 14) in Aarti Industries share price history, one would have got 1,785 shares of the company. After issuing 1:1 bonus shares on two occasions in 2019 and 2021, these 7,140 shares would have increased to 28,568 (1,785 x 2 x 2).
becomes 1 lakh 39 lakh
So, if an investor had invested 1 lakh in this multibagger chemical stock eleven years ago, its total shareholding in the company would have been 7,140. Share price of Aarti Industries closes 544 per cent on Friday. This means, the absolute value of 1 lakh invested eleven years ago would have grown to approx. 39 lakhs today ( 544 x 7,140).
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