In this article, we will discuss about how 30-year-old investment of ₹10,000 in Infosys turned to worth Rs. 20 Crore in 2022 (18/01/ 2022).
Bengaluru-based company’s IPO at an issue price of ₹95 per share. Infosys shares were listed on Indian stock exchanges on June 14, 1993.
- Rs. 10,000 invested in Infosys IPO at an issue price of ₹95 per share, around 105 shares.
- Rs. 10,000 invested in Infosys IPO in 1993 turned to Rs. 19.86 Crore in 2022 (18/01/ 2022).
- Rs. 10,000 invested in Infosys IPO in 1993 turned to Rs. 15.62 Crore in 2023 (20/01/ 2023) as the stock prices went down during this period.
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The above wealth was created through long term investment, shareholders got the benefits from the corporate actions like Bonus and stock split etc. Here we have not considered the return which earned through Dividends.
History of Infosys Ltd.
Infosys Limited is a global technology company based in India. The company provides a wide range of services, including consulting, technology, and outsourcing services, to clients around the world.
Infosys is one of the largest IT services providers in India and is known for its expertise in areas such as digital transformation, artificial intelligence, and cloud computing.
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Here is a brief history of the Infosys:
- In 1981: Infosys is founded by seven engineers in Pune, India. The company is initially focused on providing consulting services to clients in the United States.
- 1983: Infosys opens its first international office in Boston, Massachusetts.
- 1993: The company goes public on the Indian stock exchange, raising $17.5 million in an initial public offering.
- 1999: Infosys becomes the first Indian company to be listed on the NASDAQ stock exchange.
- 2000s: Infosys continues to expand its operations globally, opening offices in China, Europe, and other parts of Asia.
- 2011: Infosys’s founder and CEO, N. R. Narayana Murthy, retires from the company.
- 2014: Vishal Sikka becomes the first non-founder CEO of Infosys.
- 2017: Sikka resigned as CEO due to differences with the Board.
- 2018: Salil Parekh, joined as CEO and MD.
Infosys is listed on both the Bombay Stock Exchange and the National Stock Exchange of India, as well as on the New York Stock Exchange (NYSE). As of 2021, the company had a market capitalization of over $50 billion and has more than 300,000 employees worldwide.
History of Infosys Bonus and Stock Split
Infosys Limited has issued bonus shares and split its shares multiple times over the years. Here is a list of bonus and stock split of Infosys in its history of 1993-2022.
Infosys Investment growth:
| Year | Action (Bonus & Stock Split) | Number of Shares | Face Value |
|---|---|---|---|
| 1993 | Initial Investment | 100 | Rs. 10 |
| 1994 | 1:1 Bonus | 200 | Rs. 10 |
| 1997 | 1:1 Bonus | 400 | Rs. 10 |
| 1999 | 1:1 Bonus | 800 | Rs. 10 |
| 2000 | Stock split to FV Rs.5 | 1,600 | Rs. 5 |
| 2004 | 3:1 Bonus | 6,400 | Rs. 5 |
| 2006 | 1:1 Bonus | 12,800 | Rs. 5 |
| 2014 | 1:1 Bonus | 25,600 | Rs. 5 |
| 2015 | 1:1 Bonus | 51,200 | Rs. 5 |
| 2018 | 1:1 Bonus | 102,400 | Rs. 5 |
Investment in 1993
If someone invested Rs. 10,000 in Infosys IPO in 1993 at an issue price of ₹95 per share, total 105 shares are allotted. Here we have taken an example of 100 shares.
- In 1993, shares were 100 and stock IPO price was Rs. 95.00.
- Rs.95.00× 100 = Rs. 9500 invested
Scenario-1
If someone invested Rs. 10,000 in Infosys IPO in 1993, it turned to Rs. 19.86 Crore in 2022 (18/01/ 2022).
- On 18/01/2022, shares were 102,400 considering bonus & stock split and stock price was Rs. 1939.50.
- Rs.1939.50 × 102,400 = Rs. 198,604,800 i.e. around 19.86 crore.
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Scenario-2
If someone invested Rs. 10,000 in Infosys IPO in 1993, it turned to Rs. 15.62 Crore in 2023 (20/01/ 2023) as the stock prices went down.
- On 20/01/ 2023, shares were 102,400 considering bonus & stock split and stock price was Rs. 1525.45.
- Rs.1525.45× 102,400 = Rs. 156,206,080 i.e. around 15.62 crore.
The stock market is known for its volatility and unpredictability. While it can provide great returns over the long-term, it is difficult to predict short-term market movements. It’s important to remember that no one can predict the market with certainty.
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It’s also important to remember that timing the market is very difficult and it’s impossible to know when is the best time to buy or sell shares. As a general rule, it’s usually better to invest for the long-term and not try to time the market.
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That’s the reason we have taken 2 scenarios when someone might choose to sell their shares in the stock which is between Rs. 15 to 20 crores.
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