Aqua Posted January 29, 2007 Share Posted January 29, 2007 Amazing Growth of INFOSYS We all know about the growth story of Infosys. How about the stock? Lets find out. Infosys was founded by Narayana Murthy along with some others in 1981. It came with an IPO in 1993 at the price of Rs. 95. Everybody who applied got the shares. Many missed the Diamond opportunity by not applying. Suppose that a person applied for 100 Shares. It would cost him Rs. 9500. Let us assume that he is holding the same position till today. What will be the value now? Let us calculate. Remember that in these 13 years Infosys would have offered many dividends. Let us keep this aside and calculate the value of shares alone. Soon after IPO, Infy gave 1:1 bonus in 1994. So, our 100 shares will be 200 in 1994. Again they gave 1:1 bonus in 1996. That will take the count to 400 shares. And again in 1998 they offered bonus of 1:3 shares. That will take our count to 1600 shares. In 2000, they split the stocks (Rs. 10 FC to Rs. 5 FC). This will take our count to 3200 shares. In 2004, again they announced 1:1 bonus. It will take our count to 6400 shares. Recently, two months back they gave bonus shares in the ratio of 1:1. Now, the count of ours would be 12800. Today(13/10/2006), I checked the CMP of Infosys. Its Rs. 2070. So, what will be the value of our shares? 12800 x 2070 = Rs. 2,64,96,000. Yes, its Two Crores Sixty Four Lakh and Ninety Six Thousand only. What other investment would have taken to this level? Real-Estate? Bank Deposit? Gold? I don't think so. A Bank deposit of Rs. 9500 in the same year at the rate of 12% would have hardly fetched us Rs. 38,000 by this time. Can u find ONE MORE INFOSYS..................now and tell me also Link to comment Share on other sites More sharing options...
Dhondy Posted January 29, 2007 Share Posted January 29, 2007 Re: A Simple Calculation! - But Stunning! Yes, sobering stuff. Which stocks would you recommend today, Aqua? Link to comment Share on other sites More sharing options...
Guest dada_rocks Posted January 29, 2007 Share Posted January 29, 2007 Re: A Simple Calculation! - But Stunning! In case of infosys I knew it for sure that it will turn big but too bad in those days I used to be pennyless student somehow living on monthly doles from my father who himself was too deep in loan. Link to comment Share on other sites More sharing options...
gator Posted January 29, 2007 Share Posted January 29, 2007 Re: A Simple Calculation! - But Stunning! i wonder, if there was even one person who had a constant position in infosys since its IPO apart from its founders and employees or kind.... Link to comment Share on other sites More sharing options...
Aqua Posted January 30, 2007 Author Share Posted January 30, 2007 Re: A Simple Calculation! - But Stunning! Yes, sobering stuff. Which stocks would you recommend today, Aqua? Dhondy, do you realize that you have just asked a 17 yr old for advice on stock picks? My god... I am interested in stock and stuff but i dont think i am in a good position to give advice... yet... :hmph: Link to comment Share on other sites More sharing options...
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