Those who put money in this Navratna stock won the lottery, investors became millionaires, 1 lakh became 2 crores

New Delhi. Patience is very important to make money from the stock market. Investors who invest in stocks with strong fundamentals for the long term usually make huge profits. With a long tenure share, the investor not only gets the benefit of increase in share price but also gets many other benefits. Which includes benefits like dividend, bonus shares, buyback of shares, rights issue etc. Which a long term investor gets more than short term investors. These benefits multiply the returns of the investor manifold. Those who want to know how these long term benefits affect one’s investment should look at Bharat Petroleum Corporation Limited or BPCL share price history.

The fortunes of long-term investors who bet on the shares of Navratna company Bharat Petroleum Corporation Ltd have also changed in the same way. In 23 years, this multibagger stock has given bumper returns. An investor who invests one lakh rupees in this share is the owner of crores of rupees today.

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This Navratna company has been paying regular dividends to its shareholders while it has declared bonus shares on four occasions since 2000. So if an investor had invested in the shares of this company, his ₹1 lakh would have turned into more than ₹2 crore today because of these four bonus shares.

BPCL issued bonus shares
As per the information available on BSE website, BPCL has declared bonus shares in the years 2000, 2012, 2016 and 2017 respectively. The shares of BPCL underwent ex-bonus trading on December 20, 2000 for issue of bonus shares in the ratio of 1:1. Similarly, it carried out ex-bonus business for issue of bonus shares in the ratio of 1:1 on July 13, 2012 and July 13, 2016. Again on 13 July 2017, the shares of BPCL traded ex-bonus to issue bonus shares in the ratio of 1:2.

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effect of bonus shares
Due to the first three 1:1 bonus shares, a long term investor who had invested in BPCL shares in early 2000, got his shareholding increased to 8 times (2 x 2 x 2). Subsequently in 2017 the Navratna company declared 1:2 bonus shares, which means that the shareholding increased by 50 percent as the company gave one bonus share for every two shares held by the shareholder. Hence, the investor’s shareholding becomes 12 times (8 x 1.5).

bpcl share price history
In early 2000, the share price of BPCL was around ₹20 per share. If an investor had invested Rs 1 lakh in BPCL shares, he would have got 5,000 shares of BPCL. These 5,000 shares will be worth 12 times after the four bonus shares discussed above. This means that after the issue of bonus shares in 2000, 2012, 2016 and 2017, the total number of BPCL shares in one’s demat account would have gone up to 60,000.

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