1:1 bonus share, 1:2 stock split: Multibagger NSE SME IPO turns ₹1.22 lakh to ₹28.60 lakh in six months

Multibagger stock: Varanium Cloud shares are one of the multibagger stocks that Indian stock market has delivered in 2023. The initial public offer of the NSE SME stock was launched in September 2022 at a fixed price band of ₹122 per equity share and it listed on 27th September 2022 on NSE SME exchange at ₹131 apiece,, delivering a little over 7 per cent listing premium to its investors. However, the SME stock didn't stop there and went on to climb to its life-time high of ₹1,602.40 apiece on NSE in January 2023, delivering over 1200 per cent return to those allottees who remained invested in the stock despite skyrocketing stock price post-positive listing.

Varanium Cloud share price today is around ₹715 apiece on NSE. But, this decline is stock price is because of the price adjustment post-bonus shares and stock split in March 2023. The SME company went through 1:2 stock split and declared issuance of 1:1 bonus shares is March 2023. So, those allottees, who remained invested in the scrip post-positive listing of the SME IPO, their shareholding surged four times without further investment.

Multibagger IPO details

The Multibagger NSE SME IPO was launched at a price band of ₹122 and one lot of the public issue comprised 1000 company shares. After 1:1 bonus share announcement, total number of stocks held by the allottee turned to 2000 that further turned to 4,000 after announcement of 1:2 stock split.

Impact on one's investment

To apply for one lot of the SME IPO, a retail investor required ₹1.22 lakh ( ₹122 x 1000), which means minimum investment of a retail investor in this NSE SME IPO was ₹1.22 lakh. If the allottee had remained invested in the scrip till date, its shareholding would have surged to 4000 company shares after issuance of bonus shares and stock subdivision.

₹1.22 lakh turns to ₹28 lakh

As Varanium Cloud share price today is around ₹715 apiece, absolute value of ₹1.22 lakh would have turned to ₹28.60 lakh ( ₹715 x 4000) today.

This article taken by livemint.com

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