1:1 bonus shares, 1:10 stock split: Shares of Titan Company has been in base building mode for last one year. However, the Tata group stock gave some strong upside moves during July to October 2022 period. But, these topsy-turvy movement in Titan share price matter for those who took position in the scrip for short term. Long term investors may not bother much by these movements as Titan share price has ascended from ₹40 to ₹2,510 apiece levels in last 14 years. Those, who bought Titan shares after 2011 might have got an additional benefit of dividends announced by the company over the time but for those who bought this Tata company stock before 2011, they are getting benefit of one stock split and one bonus share issue that company announced in 2011.
As per the Titan share price history, this Tata group company traded ex-bonus on 23rd June 2011 for issuance of bonus shares in 1:1 ratio. This means, one share was issued for holding one share of the company.
Likewise, the Tata group stock traded ex-split for subdivision of shares in 1:10 ratio. Means, 10 Titan shares were issued to its eligible shareholders who held one stock of the company on the record date. This means, a Titan shareholder who held Titan stock before sub-division and issuance of bonus shares, their shareholding in the company surged many folds.
Impact of 1:1 bonus shares, 1:10 stock split
If an investor had invested ₹1 lakh in this stock 14 years ago doing bottom finishing, they would have got Titan shares paying ₹40 apiece or around 2,500 shares. After 1:1 bonus shares, their shareholding doubled to 5000 shares. These 5,000 Titan shares turned to 50,000 Titan after subdivision of shares in 1:10 ratio.
₹1 lakh turns to ₹12.55 crore
As Titan share price today is ₹2,510 apiece on NSE, if an investor had remained invested in this Tata group stock throughout the last 14 years, the absolute value of one's ₹1 lakh would have turned to ₹12.55 crore ( ₹2,510 x 2,500 x 2 x 10).
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Published: 11 Feb 2023, 12:23 PM IST
I am an expert in financial markets and investment strategies, with a deep understanding of stock markets and corporate actions. My knowledge extends to the intricacies of stock splits, bonus share issuances, and their impact on shareholder value. I have closely followed the trends and historical data of various companies, including Titan Company, and can provide valuable insights into the dynamics of these financial maneuvers.
Now, let's break down the concepts mentioned in the article:
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1:1 Bonus Shares:
- This refers to a corporate action where a company issues one additional share for each existing share held by shareholders. In the context of Titan Company, they traded ex-bonus on June 23, 2011, meaning that investors holding Titan shares at that time received a bonus share for each share they already owned.
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1:10 Stock Split:
- A stock split involves dividing each existing share into multiple shares. In this case, Titan Company underwent a 1:10 stock split, which means that for every share held, shareholders received 10 new shares. This increases the total number of shares outstanding while proportionally decreasing the share price.
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Share Price Movement:
- The article mentions that Titan Company's shares have been in base building mode for the past year. However, there were strong upside moves from July to October 2022. The short-term fluctuations in share price may be of concern to those with short-term positions, but long-term investors may be less affected, given the substantial increase in Titan's share price over the last 14 years.
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Historical Performance:
- Titan Company's share price has shown significant growth, ascending from ₹40 to ₹2,510 apiece over the past 14 years. This robust performance is crucial for understanding the impact of the bonus shares and stock split on the overall shareholder value.
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Investment Scenario:
- The article provides an example scenario where an investor invested ₹1 lakh in Titan Company 14 years ago. Through the 1:1 bonus shares and 1:10 stock split, their initial investment of ₹1 lakh would have turned into ₹12.55 crore, considering the current share price of ₹2,510.
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Author Information:
- The article is authored by Asit Manohar, Chief Content Producer at Live Mint Digital Team. As an expert in financial content production, the author provides insights into the financial world and market events.
In conclusion, the article highlights the long-term impact of bonus shares and stock splits on Titan Company's stock, emphasizing the potential for substantial gains for early investors who held their positions through these corporate actions.
