Three 1:1 bonus shares: IT stock turns ₹1 lakh to ₹2.75 crore in 20 years
Infosys shares are one of those dividend paying stocks that has a history of giving bonus shares to its long term positional shareholders at regular intervals. This habit of Infosys board makes this stock a lucrative long term investment option as it gives some added advantage to a long term investor in comparison to other peers of the IT giant. For example, Infosys has delivered interim and final dividend on a regular basis but at the same time it has given bonus shares thrice in last 20 years. Most importantly, the bonus shares given by Infosys on all occasions have been in the ratio of 1:1 means one bonus share for each share held by an Infosys shareholder on bonus share record date.
Infosys bonus share history
As per the information available on BSE website, Infosys has given bonus shares thrice in last 20 years. It traded ex-bonus on 2nd December 2014 for issuance of bonus shares in 1:1 ratio. Likewise, Infosys stocks traded ex-bonus on 15th June 2015 for 1:1 bonus share issue. Similarly, on 4th September 2018, Infosys shares traded ex-bonus for issuance of one bonus share for each Infosys share held by an eligible shareholder of the IT company. This was the last time when Infosys traded ex-bonus shares.
Impact of bonus shares
Around 20 years ago, a bottom finisher who believed in discounted buying, he or she had an opportunity to buy Infosys shares at around ₹45 apiece levels. If an investor had invested ₹1 lakh in Infosys stocks at that time, the investor would have got 2,222 Infosys shares. After that, Infosys declared 1:1 bonus shares thrice in 2014, 2015 and 2018. this means, Infosys shareholders holding would have surged to 8 times (2 x 2 x 2) after every 1:1 bonus shares. So, an investor who had invested ₹1 lakh in Infosys stocks twenty years ago, its total shareholding would have surged to 17,776 (2,222 x 8).
₹1 lakh turns to 2.75 crore
On 25th January 2023, Infosys share price ended at ₹1,542 apiece on NSE. This means, an investor who invested ₹1 lakh in Infosys shares twenty years ago, the absolute value of this ₹1 lakh would have turned to ₹2,74,10,592. If we add interim dividends and final dividend announced during these 20 years, then in that case absolute value of ₹1 lakh would come around ₹2.75 crore.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.