27. December 2006

Infosys Share in 1993 would Make ………

We all know about the growth story of Infosys. How about the stock? Lets
find out. Infosys was
founded by Narayana Murthy along with some others in 1981. It came with an
IPO in 1993 at the price
of Rs. 95. Everybody who applied got the shares. Many missed the Diamond
opportunity by not


applying. Suppose that a person applied for 100 Shares. It would cost him
Rs. 9500. Let us assume
that he is holding the same position till today. What will be the value
now? Let us calculate.
Remember that in these 13 years Infosys would have offered many dividends.
Let us keep this aside
and calculate the value of shares alone. Soon after IPO, Infy gave 1:1
bonus in 1994. So, our 100
shares will be 200 in 1994. Again they gave 1:1 bonus in 1996. That will
take the count to 400
shares. And again in 1998 they offered bonus of 1:3 shares. That will take
our count to 1600 shares.
In 2000, they split the stocks (Rs. 10 FC to Rs. 5 FC). This will take our
count to 3200 shares. In
2004, again they announced 1:1 bonus. It will take our count to 6400
shares. Recently, two months
back they gave bonus shares in the ratio of 1:1. Now, the count of ours
would be 12800.
On 13/10/2006, I checked the CMP of Infosys. Its Rs. 2070. So, what
will be the value of our
shares? 12800 x 2070 = Rs. 2,64,96,000. Yes, its Two Crores Sixty Four Lakh
and Ninety Six Thousand
only.
What other investment would have taken to this level? Real-Estate? Bank
Deposit? Gold? I don’t think
so. A Bank deposit of Rs. 9500 in the same year at the rate of 12% would
have hardly fetched us Rs.
38,000 by this time.

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  • 4 Comments

    MyAvatars 0.2

    1. Shashi Bhushan Prasad 110.227.74.72 not found Wrote Using Safari Safari 534.13 on Mac OS Mac OS X on 16. February 2011 at 9:49 am

    hi,Infosys. main shashi bhushan Prasad aapka “Infosys Share in 1993 would Make ………” lesson study karne ke bad aapke company ka bonus record dekha to paya ki kuchh bonus mismath kar raha hai, iska main reson kya hai? compny ke bonus profile mein ” 2006 1:1 13 / 7 / 2006
    2004 3:1 1 / 7 / 2004
    1999 1:1 8 / 2 / 1999
    1997 1:1 19 / 8 / 1997
    1994 1:1 19 / 8 / 1994
    ” ye diya hua hai but google mein “Infosys Share in 1993 would Make ………”is heding ko read karne ke bad kuchh hi show karta hai. so plz mujhhe detail dijiye ki kya sahi hai.

    thanks
    shashi bhushan prasad (Share Investor)
    Patna(Bihar)
    07739801622

    MyAvatars 0.2

    2. Surya Narayanan KA From INDIA (INDIA) Wrote Using Internet Explorer Internet Explorer 7.0 on Windows Windows XP on 05. January 2012 at 9:09 am

    Sir,

    The Bonus share and splitting of share seems to quotted in correctely, Therefore, publish a correct data in this regard please

    MyAvatars 0.2

    3. Surya Narayanan KA From INDIA (INDIA) Wrote Using Internet Explorer Internet Explorer 7.0 on Windows Windows XP on 05. January 2012 at 9:17 am

    Sir,
    Infosys stock Bonuses splits since IPO is seems to different in various medias. Therefore the correct data especially 3:1 bonus share issue may kindly be pulished to avoid unnecessry confusions. Whether it in 1998 or 2004

    Thanking you

    surya Narayanan K.A

    MyAvatars 0.2

    4. Мебель на заказ 95.135.58.80 not found Wrote Using Mozilla Firefox Mozilla Firefox 8.0 on Windows Windows XP on 11. January 2012 at 12:52 pm

    Assumptions are not bad, but there is a risk to remain without a single rupee. Risk to the mind.

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