Home » Current Affairs » Tata shares turn ₹1 lakh to ₹169 crores in 20 years | ₹3 to ₹2535

Tata shares turn ₹1 lakh to ₹169 crores in 20 years | ₹3 to ₹2535

Tata shares turn on crores

Multibagger Stocks: A long-term stock investor does not profit simply from an increase in the price of the stocks in his portfolio. Many other sources of shareholder income help your money grow even when the stock doesn’t go up. Declaration of interim dividends, free shares and share buybacks, etc., are additional tools that help stock investors grow. However, if the stock rises with these media, it becomes the icing for stock investors. The stock of Titan Company is one of those stocks which has given great returns to its shareholders while announcing bonus stock and stock split simultaneously. Titan shares are one of the multi-bagger stocks the Indian stock market has recently delivered.

Titan’s share price has risen from ₹3 to ₹2535 each, which has been recorded nearly 845 times in the last 20 years. But, its long-term investors have benefited from this share price appreciation. During this period, the company has also announced a 10:1 stock split and a 1:1 stock bonus. Although an investor does not earn from a stock split, the stock split increases the number of shares he holds and decreases his cost of entry. When Tata Group shares announced a 10:1 stock split in June 2011, the cost of entry for shareholders who had bought Titan shares 20 years earlier in August 2002 was reduced to 10 per cent of its actual cost was reduced.

The Tata group company also announced 1:1 free shares to its shareholders in June 2011. Therefore, due to the free share issue, the cost price of shareholders who bought Titan shares 20 years ago was reduced by more than 50 per cent. Since the stock split had already reduced the cost of his inputs to 10 per cent of the actual cost. The issue of bonus shares reduced its cost price to 5 per cent of its actual purchase level. Since he had bought one share of Titan at ₹3 each, due to a 10:1 stock split and a 1:1 bonus share announcement, the actual share cost for such investors was reduced to ₹0.15.

Therefore, long-term investors who bought Titan Company shares 20 years ago by paying ₹3 per share, their purchase cost came down to ₹0.15 per share due to a 10:1 stock split and a 1:1 bonus. Shares were announced. June 2011. For such long-term investors, Titan’s share price has risen from ₹0.15 to ₹2,535 each, registering 16,900 times over the past two decades.

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