MILLIONAIRE INITIAL PUBLIC OFFERINGS OF INDIA

CROREPATI INITIAL PUBLIC OFFERINGS.

Infosys ltd

Infosys Ltd IPO was launched in February 1993 following which it got listed in June 1993. Shares of Infosys made a blockbuster debut at the stock market as the share price rallied more than 50% to Rs 145 in the opening trade as against an issue price of Rs 95 per equity share.

Infosys share price has returned more than 1600% to Rs 1245.6 (adjusted to all bonuses, stock split, etc). Incorporating all bonus issues, stock splits and the appreciation in share price, Rs 10,000 invested in Infosys shares at the time of IPO, has turned into well over Rs 2 crore in the span of 25 years.

MRF Ltd

One of the golden rules of the stock market is that you cannot be impatient. It is all about patience, and if you have that, sky is the limit. This holds true for equity investors who invested in MRF shares in April 1993 and held on. MRF (Madras Rubber Factory), which debuted as a public company with a face value of Rs 10 per share, has delivered more than 7,40,109 per cent returns to investors in the last 25 years. On April 27, 1993. The scrip hit its lifetime high of Rs 81,423 on April 30, 2018.

MRF shares have generated multi fold returns for the investors over the years. If an investor had invested Rs 1 lakh in MRF shares 25 years ago, the corpus would have been worth Rs 74.02 crore in April 30, 2018 when the stock was its peak.

WIPRO Ltd

Rs 10000 to Rs 741 crore from Wipro IPO:

Let’s just assume that you bought 100 shares of Wipro each at a face value of Rs.100 in the year 1980. Total investment: Rs10,000. You don’t touch it at all, no profit booking or buying more shares. Occasionally companies provide benefits to its shareholders by way of corporate actions. They could provide bonus shares for shares that you hold, they could do a stock split where a high face value share would be broken down into smaller face value shares but the number of shares increases proportionately, etc.

Wipro has done various such bonuses and stock splits in its history of 1980-2017. Let us now see the different corporate actions and how the number of stocks would’ve grown.

Wipro Investment growth

YEAR

ACTION

NUMBER OF SHARES

FACE VALUE

1980

Initial Investment

100

Rs. 100

1981

1:1 Bonus

200

Rs. 100

1985

1:1 Bonus

400

Rs. 100

1986

Stock split to FV Rs.10

4,000

Rs. 10

1987

1:1 Bonus

8,000

Rs. 10

1989

1:1 Bonus

16,000

Rs. 10

1992

1:1 Bonus

32,000

Rs. 10

1995

1:1 Bonus

64,000

Rs. 10

1997

2:1 Bonus

1,92,000

Rs. 10

1999

Stock split to FV Rs.2

9,60,000

Rs. 2

2004

2:1 Bonus

28,80,000

Rs. 2

2005

1:1 Bonus

57,60,000

Rs. 2

2010

2:3 Bonus

96,00,000

Rs. 2

2017

1:1 Bonus

1,92,00,000

Rs. 2

After the year 2010, there were no more bonuses or stock splits. But with just that initial investment of Rs10,000 (100 shares) you now would end up with 1,92,00,000 shares of the company because of all the stock splits and bonus shares. The current stock price of Wipro was Rs.386 per share, as of 26 February, 2019. Rs 386 multiplied by1,92,00,000 shares is equal to 741 crore rupees.

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