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1 lakh turns to 17 cr in 20 years as auto stock gives bonus shares 5 times

It is said that if the bet is right in the stock market, then waiting can change your luck completely. Maybe even a modest investment can make you a millionaire. There are many such stocks listed in the stock market that have made investors millionaires. One such stock is of Samvardhana Motherson. This company is associated with Auto Components. This company has not only given huge returns to the investors but has also distributed bonus shares many times.

Bonus shares distributed 5 times: Samvardhana Motherson has distributed bonus shares on five occasions in the last 20 years. For the first time, it announced bonus shares in the ratio of 1:2 in October 2012. After this, on four more occasions in the last decade, it announced bonus shares in the ratio of 1:2. Bonus shares were last distributed in the ratio 1:2 in October 2018. This means that investors would have got one share for every two shares.

Understand by share: If an investor had invested Rs 1 lakh in Samvardhana Motherson 20 years ago, he would have got 1,81,818 shares of the company. Whereas, after the 1:2 bonus share issued in October 2012, the net shareholding of the investor would have been 2,72,727. Similarly, four more 1:2 bonus shares have been issued by the Auto Component Company, taking the investor’s net shareholding to 13,80,678.

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Consider the amount: Presently the share price of Samvardhana Motherson is Rs 123.70 on NSE. An investor who would have bought shares worth Rs 1 lakh 20 years ago would have crossed Rs 17 crore today. Its calculus pattern is ₹123.70 x 13,80,678. However, if the company had not declared any bonus shares during this period, the amount of 1 lakh would have gone up to Rs 2.25 crore.

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