1:1 bonus shares, 1:10 stock split: Tata group stock turns ₹1 lakh to ₹12.35 crore in 14 years
1:1 bonus shares, 1:10 stock split: Shares of Titan Company has been in base building mode for last one year. However, the Tata group stock gave some strong upside moves during July to October 2022 period. But, these topsy-turvy movement in Titan share price matter for those who took position in the scrip for short term. Long term investors may not bother much by these movements as Titan share price has ascended from ₹40 to ₹2,470.50 apiece levels in last 14 years. Those, who bought Titan shares after 2011 might have got an additional benefit of dividends announced by the company over the time but for those who bought this Tata company stock before 2011, they are getting benefit of one stock split and one bonus share issue that company announced in 2011.
As per the Titan share price history, this Tata group company traded ex-bonus on 23rd June 2011 for issuance of bonus shares in 1:1 ratio. This means, one share was issued for holding one share of the company.
Likewise, the Tata group stock traded ex-split for subdivision of shares in 1:10 ratio. Means, 10 Titan shares were issued to its eligible shareholders who held one stock of the company on the record date. This means, a Titan shareholder who held Titan stock before sub-division and issuance of bonus shares, their shareholding in the company surged many folds.
Impact of 1:1 bonus shares, 1:10 stock split
If an investor had invested ₹1 lakh in this stock 14 years ago doing bottom finishing, they would have got Titan shares paying ₹40 apiece or around 2,500 shares. After 1:1 bonus shares, their shareholding doubled to 5000 shares. These 5,000 Titan shares turned to 50,000 Titan after subdivision of shares in 1:10 ratio.
₹1 lakh turns to ₹12.35 crore
As Titan share price today is ₹2,470.50 apiece on NSE, if an investor had remained invested in this Tata group stock throughout the last 14 years, the absolute value of one’s ₹1 lakh would have turned to ₹12.35 crore ( ₹2,470.50 x 2,500 x 2 x 10).
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.