₹500 to ₹17,330: Multibagger stock to turn ₹1 lakh to ₹35 lakh in 10 years after bonus & split
Premium- Multibagger stock: Re 1 appreciation after 1:1 bonus shares and 5:1 stock split would mean ₹10 appreciation in shareholders' portfolio
Multibagger stock Bajaj Finserv is going to trade ex-bonus and ex-split on 13th September 2022. The board of directors of Bajaj Finserv Ltd has approved and declared 1:1 bonus shares and 5:1 stock split. This move of the Bajaj group company is going to help long term shareholders of the company as their shareholding is going to multiply by 10 times in near term. Due to Bajaj Finserv bonus shares and stock split this month, an investors ₹1 lakh invested 12 years ago would become ₹68 lakh after the issuance of bonus shares and stock split.
Bonus shares and stock split impact
Around 12 years ago, Bajaj Finserv share price was around ₹500 apiece levels. So, if an investor had invested ₹1 lakh in Bajaj Finserv 10 years ago, he or she would have got 200 Bajaj Finserv shares. Now, after the 5:1 stock split and 1:1 bonus share issue, net shareholding of the shareholder would become 2000 (200 x 5 x 2).
Impact on investment
After bonus share issue and stock split, Bajaj Finserv share price would come down to ₹1,733 ( ₹17,330 /10), if we assume Bajaj Finserv share price today as the price taken for stock split and bonus share issue. In that case, net worth of a shareholder's Bajaj Finserv portfolio would be 34.66 lakh or say around ₹35 lakh.
Bajaj Finserv share price history
Bajaj Finserv shares have remained in consolidation phase for last one year. However, the stock has been in uptrend for last two months. It has surged from around ₹1100 to ₹17,330 apiece levels in these two months, which signals that the stock is trying to come out of the base-building mode. It is one of the multibagger stocks that Indian stock market has delivered in last 5 years. In last 5 years, Bajaj Finserv has delivered more than 200 per cent return to its shareholders whereas in last 10 years, it has surged from around ₹500 to ₹17,330, delivering near 3300 per cent return to its positional shareholders.
Speaking on the additional benefit that Bajaj Finserv shareholders may expect after stock split and bonus share issue, Ravi Singhal, CEO at GCL Securities said, "After stock split and bonus shares issuance, volume in stock is expected to go up, which may lead to sharp upside in the stock in short to medium term as small sized retail investors will be able to invest in Bajaj Finserv after stock split and bonus share issue."
Ravi Singhal of GCL Securities said that appreciation of Re 1 in the multibagger Bajaj stock after stock split and bonus share issue will be of ₹10 as shareholding of the investor would rise 10 times after 5:1 stock split and 1:1 bonus shares. So, after bonus shares and stock split, if the stock surges 10 per cent, a current shareholders' portfolio will surge 100 per cent as they will have 10 times more shares in comparison to current pre-bonus and stock split times.
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