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1:1 bonus shares twice: Multibagger chemical stock turns ₹1 lakh to 10.68 crore in 20 years


Aarti Industries shares are one of the multibagger stocks that Indian stock market has produced in recent years. After rising to its 52-week high of 1,118 on NSE, this chemical stock has been under base building mode giving zero return to its short term investor. However, for a long term investor this stock has remained a money making share, that have given whopping return to a positional investor. This stock has risen from around 2.45 apiece levels to around 654.25 apiece levels, ascending to the tune of 26,600 per cent in last 20 years.

Aarti Industries share price history

As mentioned above, this multibagger chemical stock has been under profit booking pressure after ushering in 2022. In YTD time, this stock has shed over 35 per cent whereas in last one year, it has declined to the tune of 28 per cent. However, this multibagger stock has delivered strong return to its shareholders in post-Covid and pre-Covid times. In post-Covid rebound, this multibagger stock has surged from around 380 to 654 apiece levels whereas in last five years, it has risen from near 218 to 654 apiece levels, giving around 200 per cent return to its shareholders. In last 10 years, this multibagger chemical stock has risen from around 21.65 to 654.25 levels, recording around 2,900 per cent rise in this period. Likewise, in last 20 years, this multibagger stock has surged from around 2.45 apiece levels to 654.25 levels, delivering 26,600 per cent return to its investors.

Aarti Industries Bonus share history

However, Aarti Industries shareholders have not just benefitted from sharp rise in Aarti Industries share price. The chemical company has announced bonus shares as well. This chemical stock has given 1:1 bonus shares on two occasions in last 20 years. This multibagger chemical stock traded ex-bonus in September 2019 and June 2021.

Impact of bonus shares

If an investor had invested 1 lakh in this multibagger chemical stock twenty years ago, he or she would have got around 40,816 Aarti Industries shares. After 1:1 bonus shares in September 2019, shareholding of Aarti Industries shareholders eligible for bonus shares got doubled. Hence, investors shareholding after bonus shares in 2019 would have doubled to 81,632. Likewise, after 1:1 bonus shares in June 2021, one’s shareholding would have further doubled to 1,63,264 shares.

1 lakh turns to 10.68 crore

Aarti Industries share price today is 654.25 apiece on NSE. So, if an investor had invested 1 lakh in this stock 20 years ago, its total shares after 1:1 bonus shares in 2019 and 2021 would have become 1,63,264. So, net worth of one’s 1 lakh invested 20 years ago in Aarti Industries would have grown to 10,68,15,472 ( 654.25 x 1,63,264) or 10.68 crore.

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