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Mitsu Chem Plast IPO: There are many SME IPOs in the stock market which have multiplied investors’ money. One such IPO is that of Mitsu Camplast. The IPO was launched in August 2016 at a price of ₹95 per equity share. At the same time, one lot of IPO included 1200 shares. On the day the IPO was listed, investors who bet on it made a modest profit. However, investors who did not rush and placed their bets later reaped huge gains.
Declaration of Bonus Shares: In fact, SME Shareholding Company had announced bonus shares in the ratio of 2:1 in January 2020. This means that, for every stock held by a shareholder of the company on the record date, two bonus shares were awarded to the bonus shares. As per the information available on the BSE website, Mitsu Champlast Limited conducted ex-bonus trading on January 28, 2020. The board of directors of the company announced bonus shares in the ratio of 2:1.
How many shares do IPO investors own: The Mittsu Chemplast IPO was launched in August 2016 and the company fixed the issue price at ₹95 per equity share. The Mittsu Chemplast IPO lot size consisted of 1,200 shares of the company, which means the minimum amount required to apply for the IPO was ₹1,14,000 (1200 shares x ₹95). At the same time, after issue of bonus shares in 2:1 ratio in January 2020, these 1200 shares would have increased to 3600 shares of the company without any additional investment. In this way 2400 shares will have increased in the portfolio.
Mitsu Camplast share price is around ₹180 per share today. Thus, investors who would have invested ₹ 1.14 lakh in the IPO, would have invested ₹ 6.48 lakh (3,600 shares x ₹ 180) today.
DISCLAIMER: Here is only information about share or bank performance, it is not investment advice. Investment in stock market is subject to risk and please consult your advisor before investing.