3:5 bonus shares, 1:10 stock split: A long-term stock market investor enjoys some additional advantages over a short-term investor or trader. While short-term investors and traders earn only from the stock movement, a long-term investor receives various rewards that a listed company announces from its capital reserves.
These rewards are announced in the form of dividends, bonuses, stock splits, share buybacks, etc. These rewards may not affect the investment during the announcement of the reward but in a longer period, these rewards have a huge impact on the stock holding. and the absolute return of an investor.
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To understand the impact of these rewards, one has to look at the Osia Hyper Retail IPO journey. This fixed price NSE SME IPO was launched on 26 March 2019 for ₹252 per equity share. The SME stock was listed on the NSE SME platform on 5 April 2019 at ₹255, delivering a nominal premium of ₹3 per share to its contributors.
However, if an investor had remained invested in this stock despite this negligible return on the listing date, then the absolute value of their money has increased more than four times in the last five years.
Osia Hyper Retail share price history
As mentioned above, Osia Hyper Retail IPO was launched at a fixed price of ₹252 per equity share. Bidder was allowed to apply in lots and one lot of the Osia Hyper Retail IPO consisted of 400 company shares. This means that the minimum investment of a lucky person was ₹1,00,800 (400 x ₹252).
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Bonus shares, shares split effect
According to the share price history of Osia Hyper Retail available on the NSE website, the shares of SME traded ex-bono on 21st June 2022 to find out eligible shareholders of the company for issuing 3:5 bonuses. Later, the SME stock traded ex-split on March 13, 2023 for a 1:10 stock split.
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Effect on shareholding of assignees
So, if an allottee had remained invested in this SME stock until now, its 400 company shares allotted through the share allotment process would have turned into 640 ((3+5)/5 x 400). After the stock split in March 2023, this 640 share holding would turn into 6,400 shares.
Osia Hyper Retail share price today climbed to a new lifetime high of ₹69.05 a piece on NSE. This means that if an allottee has so far remained invested in this SME share without any interruption, its ₹1,00,800 would have turned to ₹4,41,920 ( ₹69.05 x 6.400).
In the company’s share pattern for the quarter from October to December 2023, FIIs raised their stake in the company from 4.85 percent to 11.13 percent. Promoters of the company reduced their shareholding from 58.18 percent to 50.79 percent.
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
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Published: 29 Jan 2024, 12:25 IST
(tagsTo Translate)SME