Praj Industries bonus share history
As mentioned above, Praj Industries traded ex-bonus in August 2005 when it issued bonus shares in 1:1 ratio. Similarly, this multibagger engineering stock traded ex-bonus in 2007 as it once again issued bonus shares in 1:1 ratio.
Bonus shares impact
Twenty years ago, Praj Industries shares were available at a price of ₹2 per equity share. So, if an investor had invested ₹1 lakh in this engineering stock 20 years ago, it would have got 50,000 Praj Industries shares. As the engineering company announced bonus shares in 1:1 ratio in August 2005, its shareholding in the company would have doubled to 1 lakh company shares. Similarly, its shareholding in the company would have doubled to 2 lakh shares in 2007 after issuance of bonus shares in 2007.
₹1 lakh turns to ₹8.90 crore
Praj Industries share price today is ₹445.40 apiece. So, if an investor had invested ₹1 lakh in Praj Industries twenty years ago, its ₹1 lakh would have turned to ₹8,90,80,000 or ₹8.9 crore.
In case, there had been no bonus shares issued by Praj Industries, in that case ₹1 lakh invested by the investor twenty years ago would have grown to ₹2,22,70,000 or ₹2.22 crore. So, due to issuance of bonus shares, the investor's absolute return shot up four times from the normal share price appreciation.
