In 23 years, Navratna stock increases from 1 lakh to 2 crore.

 Effect of bonus shares: A long-term share investor benefits from extra awards that a listed firm announces over time from its capital reserves in addition to the rise in stock price. Long-term stock investors benefit significantly more from dividends, bonus shares, share buybacks, rights issues, etc. than do short-term stock investors. These benefits multiply one's return many times over. One needs to look at the share price history of Bharat Petroleum Corporation Ltd., also known as BPCL, to understand how these long-term benefits affect one's investment.

This Navratna business has regularly distributed dividends to its stockholders while announcing bonus shares just four times since 2000. Because of these four bonus shares, if an investor had purchased stock in this state-owned corporation, their original investment of Rs. 1 lakh would now be worth almost Rs. 2 crore. 

History of BPCL bonus shares 

BPCL announced bonus shares in 2000, 2012, 2016 and 2017, according to data on the BSE website. For the 1:1 ratio of bonus shares issued, BPCL shares went ex-bonus on December 20, 2000. On July 13, 2012, and July 13, 2016, it also traded ex-bonus for the issuing of bonus shares in a 1:1 ratio. BPCL shares once more traded ex-bonus for issuance on July 13.

the effect of bonus shares 

A long-term investor who had purchased BPCL shares at the beginning of 2000 would have seen their shareholding increase to 8 times thanks to the first three 1:1 bonus shares (2 x 2 x 2). Later, in 2017, the Navratna firm issued 1:2 bonus shares, which implies that the shareholding increased by 50% as a result of the corporation giving one bonus share for every two shares that the shareholder had. Consequently, the investor's shareholding increased by 12 times (8 x 1.5).

History of BPCL share prices 

The price of a BPCL share was roughly $20 at the start of 2000. A shareholder would have received 5,000 BPCL shares for a one lakh rupee investment in BPCL shares. After the four bonus shares mentioned above, these 5,000 shares would have 12 times the value.

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