Regarding IPO ( reference to Art of Stock Investing book)
The book has mention that if someone invested rupees 5k in 1993 Infosys IPO(95 Rs per share) and holding till date it would be worth over 2 crore today(dividend 25 L).
Mani, Can you please elaborate a little more. I have gone thru your book, but didn't understand how 5k is 2 crore now and how dividend calculated.
Infosys was split shares 128 times (Bonus shares and face value change from 10 to 5) since IPO in 1993 ... You can find details about Infosys stock split history at Infosys - Investors | FAQs
Infosys IPO price was 95 Rs in 1993 ... Share price today is around 2900 Rs .... Growth since then = (2900 / 95) * 128 = 3907 times ...
If you invest 5000 in IPO, its now 5000 * 3907 = nearly 2 Crores ...
You can add dividend yield to that in the last 20 years since IPO ....
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