Infosys Completes 25 Yrs As A Listed Company: Did Investors Made Money In The Scrip?

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    The IT bellwether Infosys in a landmark event has completed 25 years of listing on the bourses on June 14, 2018. Founded by NR Narayana Murthy and 6 other first-generation entrepreneurs in Pune in the year 1981 with a seed capital of $250, Infosys has now become a $10.9 billion company with a market cap of Rs. 2.7 crore on the BSE. As on March 31, 2018, the company has a total headcount of 2,04,107 employees.

    Infosys Completes 25 Yrs As A Listed Company: Did Investors Made Money?

    Infosys IPO

    The company made the initial public offering in February 1993 and issued shares of Infosys at a price of Rs. 95 per share. The retail investor class did not showed much interest in the scrip during the offer. Nonetheless those of you, who had given the stock a miss, must be regretting a great deal as Rs. 10,000 invested in the IPO of Infosys is worth Rs. 4 crore as of now.

    Slowly, the stock gained momentum after Morgan Stanley, the investment bank, acquired 13% stake in the Information technology company.

    IPO Listing

    On June 14, 1993, Infosys scrip made its debut on the Indian bourses with tremendous listing gains at a price of Rs. 145.

    ADS or American Depository Shares Issuance

    The company in the year 1999 issued as many as 20,70,000 ADS which equals to 10,35,000 equity shares of Rs. 10 each face value at $34/ADS. These ADS got listed on the NASDAQ exchange.

    Shares split

    The company split the face value of its shares from Rs 10 to Rs 5 in 1999 (2:1). Since January 24, 2000, the shares has been quoting with a face value of Rs. 5.

    Sharing of Infosys' Profits

    Infosys has a remarkable record of sharing the company's profits with its shareholders either as bonus share issuance or via regular dividend distribution.

    Bonus share issue

    Of the 11 years, the company has announced bonus issue, 10 times it has offered bonus shares in the ratio of 1:1 and in the year 2005, Infosys announced bonus share issuance in the ratio of 3:1.

    Infosys CAGR

    So, taking into account, bonus share issuance and stock split, investors who lapped up just 100 shares of Infosys during the IPO have turned into a crorepati now, as 100 shares have now turned into a fortune of 17,064 shares and the share price too has surged in value to as much as Rs. 1238.70 on the BSE (closing price on June 14, 2018) driven by the company's profitability and revenue growth over the years. With this Infosys' investors who still hold 100 IPO shares are now worth Rs. 2.1 crore and have thus earned a CAGR of 36.2% on Infosys scrip.

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