Power of equity

unbelievable but it has happened

Rs.10,000 to Rs.741 Crores

Let's just assume that you bought 100 shares of Wipro each at a face value of Rs.100 in the year 1980. Total investment: Rs.10,000. You don't touch it at all, no profit booking or buying more shares. Occasionally companies provide benefits to its shareholders by way of corporate actions. They could provide bonus shares for shares that you hold, they could do a stock split where a high face value share would be broken down into smaller face value shares but the number of shares increases proportionately, etc.

Wipro has done various such bonuses and stock splits in its history of 1980-2017. Lets now see the different corporate actions and how the number of stocks would've grown.

Wipro Investment growth

YEAR ACTION NUMBER OF
SHARES
FACE
VALUE
1980 Initial Investment 100 Rs. 100
1981 1:1 Bonus 200 Rs. 100
1985 1:1 Bonus 400 Rs. 100
1986 Stock split to FV Rs.10 4,000 Rs. 10
1987 1:1 Bonus 8,000 Rs. 10
1989 1:1 Bonus 16,000 Rs. 10
1992 1:1 Bonus 32,000 Rs. 10
1995 1:1 Bonus 64,000 Rs. 10
1997 2:1 Bonus 1,92,000 Rs. 10
1999 Stock split to FV Rs.2 9,60,000 Rs. 2
2004 2:1 Bonus 28,80,000 Rs. 2
2005 1:1 Bonus 57,60,000 Rs. 2
2010 2:3 Bonus 96,00,000 Rs. 2
2017 1:1 Bonus 1,92,00,000 Rs. 2

After the year 2017, there were no more bonuses or stock splits. But with just that initial investment of Rs.10,000 (100 shares) you now would end up with 1,92,00,000 shares of the company because of all the stock splits and bonus shares. The current stock price of Wipro is about Rs.386 per share, as of 26 February 2019.

Rs.386 x 1,92,00,000 = Rs.741,12,00,000 or about Rs.741 crores. That is a CAGR (Compound Annual Growth Rate) of 41.42%. Does any of your bank FD give you a 41% annual interest rate? It was all possible because of the free shares that the company gave to its shareholders as an incentive for investing in their company. If you immediately needed to liquidate this entire holding today (urgent need for > Rs.700 crores?), you can do it and you would have to pay a very small long term capital gains tax on it (which was recently introduced).

Procedure for buy shares form us

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Investment of Rs. 10,000/- in 1980 will fetch Rs. 19 cr.+

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Investment of Rs. 10,000/- in 1992 will fetch Rs. 10 cr.+

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Investment of Rs. 10,000/- in 1979 will fetch Rs. 95 cr.+

How Can I Get Return Like This?

Firstly, this is not intra-day trading. In the unlisted investment, you need to purchase a share considering long-term returns,which growsin sync with the company. Keep it in physical or demat format and generate wealth in years to come. All it requires is a strategic investment in the right product. With exceptional proficiency and expertise, Akash Securities guides you in choosingthe best profitable sharefrom which you can earn attractive returns, including splits or dividends.

#Case Study:

Do you know how much an investor could have gained in the last 11 years from shares of Bajaj Finance company?

Well, 600 timeson the investment amount.The reason being price of 1 share was Rs. 7 in 2009, whereas the same increased to Rs. 4500 in 2020. That signifies, if an investor had invested Rs. 10,000 in the company shares back then, he would have yielded Rs. 64 lakh in 2020 from the investment.

Similarly,
  • Investment of Rs. 10,000 in the shares of Kotak Mahindra bank brought Rs. 80 lakh in the last 19 years.
  • Shares of Eicher Motor priced at Rs. 10,000 yielded Rs. 1.5 crore in the last 19 years.

From today’s date, do you want to gain such returns by investing Rs. 15,000 – Rs. 20,000 years down the line? Well, patience and time are the two key factors you must ensure. Give time for your investment to grow and have patience. With a calculated choice of quality unlisted share, you can gain attractive returns from the market.

So, start by investing smartly with guidance from market specialists like Akash Securities today. Together, we shallachieve your ambitious financial goals amidst an environment of trust and professionalism.

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Disclaimer

Akash Securities is not a stock exchange or a trading platform recognised by the Securities Exchange Board of Indai (SEBI) under the Securities Contract (Regulation)Act, 1956. www.akashsecurities.com is an online platform for creating liquidity to buy or sell unlisted shares of Pre-IPO companies and startups in India.