TCS shares have turned ₹5,950 into ₹1.25L in 20 years
What's the story
Tata Consultancy Services (TCS), a leading global IT services provider, has marked its 20th year of listing on the Indian stock market.
The company's initial public offering (IPO) was launched in July 2004 and listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 25, 2004.
The IPO was priced at ₹850 per share with one lot comprising seven stocks making the minimum investment for allottees ₹5,950.
Stock journey
Market performance and bonus shares
Today, the price of a TCS share stands at ₹4,499 on NSE. However, this figure does not account for bonus shares that the company declared twice during its two-decade journey.
According to BSE records, TCS stocks were traded ex-bonus on June 16, 2009, and May 31, 2018, for issuing 1:1 bonus shares.
This implies that an allottee who remained invested in TCS after receiving company shares via allotment, would have seen their shareholding increase fourfold following these bonus issuances.
Investment growth
Long-term investment yields significant returns
If an allottee had remained invested in TCS shares until now, the total value of their investment would have risen to ₹1.25 lakh (₹4,499 x 28).
This means that over the past two decades, an initial investment of ₹5,950 in TCS shares has grown into a substantial sum of ₹1.25 lakh.