Stock split 1:2: Money is not just in buying and selling stocks but in holding it as long as you can. A long-term investor not only gains from the rise in the share price, but from the various other rewards that a listed company declares from its capital reserves. These rewards could be in the form of bonus shares, dividends, share buyback, stock split, etc. At first, these rewards may not look great but in the long run, these benefits play an important role in the absolute. return of a stock market investor.
To understand how this long-term time horizon helps you get the benefit of these rewards and its impact on one’s absolute return, we need to look at the journey of Dev Information Technology or Dev IT stocks from the primary market to the secondary market. Dev IT IPO was launched on 31 March 2017 at a fixed price of ₹42 per share. One part of the public issue consisted of 3,000 company shares and it was proposed for listing on the NSE SME Emerge platform. The shares of NSE SME listed flat at ₹50 apiece on NSE on 17th April 2017. Dev IT share price today is ₹102.50 a piece on NSE and it is listed on BSE as well. So, it is now motherboard stock.
Read also: FY24 market review: 120 Nifty 500 stocks gave multibagger returns, 55 in the red; check list of top winners, losers
1:2 stock split
The IT stock traded ex-split on November 25, 2022. The company board decided to go for a stock split in 2022 and they declared a stock split of the nominal value of ₹10 per share to ₹5 per share. This means that the share split was in a ratio of 1:2, which means that the shareholding of a beneficial shareholder doubled without a change in the finances and free floats of the company.
1:2 stock split effect
As stated above, the one lot of Dev IT IPO consisted of 3,000 companies. So, if a Dev IT IPO allottee had remained invested in this NSE stock after a flat listing, then his shareholding in the company would have increased to 6,000 after a 1:2 stock split.
₹1.26 lakh turns to ₹6.15 lakhs
If a Dev IT stock allottee remained invested in this IT stock till date despite a flat listing at ₹50 per, its ₹1.26 lakhs ( ₹42 x 3000) would have turned to ₹6.15 lakhs ( ₹102.50 x 6000).
Read also: Small-cap multibagger shares Lokesh Machines surge 10% today after receiving arms license; up 1,150% in 3 years
News about Dev IT
The IT company recently stated about winning a fresh work order saying, “Lilikoi, a pioneering IoT/AI ecosystem provider headquartered in the US, has initiated its inaugural work order valued at $0.55 million with Dev Information Technology Limited (DEV IT). This milestone follows Lilikoi Holdings, Inc.’s recent acquisition of a controlling interest in DEV IT, marking the beginning of a transformative partnership. The scope of work involves the development of Custom Software tailored to the specific needs of one of Lilikoi’s subsidiary companies. Additionally , DEV IT will deploy a dedicated team of more than 40 high-quality professionals to monitor, strengthen and reinforce the IT infrastructure across the Lilikoi group and network entities. DEV IT’s state-of-the-art 24×7 Network Operations Center will facilitate this comprehensive support. , demonstrating the commitment to seamless operations and technical excellence. Looking ahead, DEV IT anticipates an increase in international opportunities driven by the acquisition of Lilikoi, setting the stage for further growth and collaboration on a global scale.”
Disclaimer: The views and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More or less
Published: 29 Mar 2024, 14:51 IST