1:10 stock split: Auto stock turns ₹1 lakh into ₹15 crore in 14 years
Stock split: Eicher Motors shares are one of those stock listed on Dalal Street that has given strong upside movement in post-Covid rally. The stock has almost tripled in last three years. However, the stock has remained a money making share for long term positional investors. Like any other stocks long term investor, Eicher Motors management also rewarded its long term positional investors through dividends, and other rewards from its reserves. But, big impact on a long term investor’s return came from stock split in August 2020. Due to this stock split, an investor’s ₹1 lakh turned to more than ₹15 crore in last 14 years.
Eicher Motors stock split history
As per the information available on official website of BSE — bseindia.com — Eicher Motors shares traded ex-split on 24th August 2020 for sub-division of its stock in 1:10 ratio. This means, the auto company’s management decided to split its one stocks into 10, which means for each one share held by Eicher Motors shareholders, ten fresh shares were given.
Impact on investment
If an investor had invested ₹1 lakh in this auto stock 14 years ago, he or she would have got 4,545 Eicher Motors shares as the stock was available at a price of ₹22 apiece in February 2009. After the stock split in 1:10 ratio one’s total shares in the company would have surged to 45,450.
₹1 lakh turns into ₹15 crore
As Eicher Motors share price today is ₹3,330 apiece, if the investor had remained invested in Eicher Motors throughout the above mentioned period, one’s ₹1 lakh would have turned to more than ₹15 crore [( ₹3,330 x 45,450)].
Eicher Motors dividend
Apart from stock split in 2020, Eicher Motors has remained as one of the dividend paying stocks on Dalal Street as well. The auto company has been continuously declaring dividend for its shareholders. The auto company has declared dividend at least once in a year since 2008. On 12th August 2022, Eicher Motors traded ex-dividend for payment of ₹21 per equity share dividend.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
