1:5 bonus shares, 1:5 stock split effect: Multibagger NSE SME stock turns ₹1.04 lakh into ₹11.64 lakh in 8 years

What happened: ShreeOswal Seeds & Chemicals, an NSE SME stock, saw a 1:5 stock split and 1:5 bonus share issue after its June 2018 IPO, multiplying an IPO investor's shareholding. Key numbers: IPO price band ₹25 to ₹26, lot size 4,000 shares, minimum investment ₹1.04 lakh. Ex-split 18 August 2023, ex-bonus 2 February 2024. Shareholding would rise to 1,00,000 shares. Why it matters: The corporate actions turned a ₹1.04 lakh IPO investment into ₹11.64 lakh over about eight years, illustrating how splits and bonus shares can compound long-term returns for investors who stayed invested.

ShreeOswal Seeds & Chemicals, an NSE SME stock, saw a 1:5 stock split and 1:5 bonus share issue after its June 2018 IPO, multiplying an IPO investor's shareholding.

The corporate actions turned a ₹1.04 lakh IPO investment into ₹11.64 lakh over about eight years, illustrating how splits and bonus shares can compound long-term returns for investors who stayed invested.