₹1 lakh turns into ₹36 lakh in 14 years as IT stock gives bonus shares 3 times

• The IT company has issued bonus shares in June 2010, June 2017 and March 2019.

A stock market investor earns not only from the rise in share price. There are many other means that help its money grow. Dividend payments, buyback of shares, bonus shares, etc. are some of the important announcements that long-term investors eagerly wait for from listed companies related to their stock portfolio. One such stock is Wipro shares. The IT major has given bonus shares to its long-term investor three times in the last 14 years with horizons ranging from ₹1 lakh to over ₹36 lakh at this time.

wipro share price history

In March 2009, Wipro shares were available at around ₹50, while today the Wipro share price is ₹412.35 per share. However, for the long-term investor, the returns far outweigh the increase in share prices. In the last 14 years, Wipro Limited has declared bonus shares on three occasions - June 2010, June 2017 and March 2019. In June 2010, Wipro Limited announced the issue of bonus shares in the ratio 2:3. In June 2017, the IT company announced bonus shares in the ratio of 1:1 while in March 2019, it announced the issue of bonus shares in the ratio of 1:3.

bonus share effect

If a long-term investor had invested ₹1 lakh in this IT stock 14 years ago, when the market went down following the post-recession selloff, he would have got one Wipro share at ₹50 per share in March 2009 . This means there could be around 20,000 Wipro shares. Purchased in March 2009 by paying ₹1 lakh. These 20,000 Wipro shares would have converted into 3,332 Wipro shares after the issue of bonus shares in the ratio 2:3. Later, these 3,332 Wipro shares would have converted into 6,664 Wipro shares in June 2017 after the issue of bonus shares in the ratio 1:1. In March 2019, Wipro again announced bonus shares in the ratio 1:3. So, 6,664 Wipro shares would have further converted into 8,885 shares. This means an investor investing ₹1 lakh in Wipro in March 2009 would have held 8,885 shares.

₹1 lakh to ₹36 lakh

Since the Wipro share price is ₹412.35 per share today, one's ₹1 lakh over the past 14 years after the three bonus shares announced by the IT major would have been ₹36.63 lakh today (₹412.35 x 8,885).