Key Highlights :
1. A long term investor can benefit from various awards that a listed company declares from its capital reserves. These awards can be in the form of interim or final dividend, bonus shares, stock split, buyback of shares, etc.
2. EKI Energy Services is an example of a multibagger stock that has risen in value over the last two years.
3. If an allottee had remained invested in EKI Energy Services until date, they would have benefited from the 3:1 bonus shares, meaning they would have received additional bonus shares for every share they own. This has led to a rise in shareholding for the allottee by four times.
4. The key points from this text are that a long term investor can benefit from the rise in stock price as well as various awards that a listed company declares from its capital reserves. These awards can be in the form of interim or final dividend, bonus shares, stock split, buyback of shares, etc.
Multibagger SME IPO was launched at ₹100 to ₹102 per equity share in April 2021. This was a significant departure from the prevailing market conditions of the time. The IPO was oversubscribed by more than 2.5 times and the company was able to list on the BSE and NSE exchanges. The company has since reported strong performance, with net profit increasing by over 180% and market capitalisation reaching ₹2,000 crore.The company's growth has been underpinned by its diversified product offering and its focus on small and medium enterprises. The company has also been able to expand its operations into new geographies and sectors.The Multibagger IPO is an excellent example of how a small and medium enterprise can successfully list on the stock exchanges and benefit from the growth opportunities available in the market.
