Infosys And Wipro – Wealth Creators Extraordinaire!
October 17, 2014 Leave a comment
Last week, Infosys announced its sixth bonus share issue since its listing in 1993. A study of the company’s bonus issue history reveals how it has aided wealth creation. If an investor bought 100 shares at Rs95 (Rs9,500) in its IPO and held it till date, he would be holding 25,600 shares after the latest bonus. The value of these shares is Rs5.05 crore (excl dividends).
Infosys’s rival Wipro has been a bigger wealth creator for loyal shareholders after 10 bonus issues and two stock splits. An investor in Wipro would be holding 960,000 shares, assuming he bought 10 shares in its IPO for Rs100 per share in 1980.Today, the value of these shares would be Rs56.11 crore (excl dividends).