Investing in 100 shares of Tata Consultancy Services (TCS) at ₹850 per share during its 2004 IPO would have led to substantial growth over the years, thanks to multiple bonus issues. Here's a detailed breakdown:
Initial Investment (2004):
- Shares Purchased: 100
- Purchase Price per Share: ₹850
- Total Investment: ₹85,000
Bonus Issues: TCS has announced three bonus issues since its listing:
-
2006 Bonus Issue:
- Bonus Ratio: 1:1 (For every 1 share held, 1 additional share was issued)
- Shares After Bonus: 100 original + 100 bonus = 200 shares
-
2009 Bonus Issue:
- Bonus Ratio: 1:1
- Shares After Bonus: 200 original + 200 bonus = 400 shares
-
2018 Bonus Issue:
- Bonus Ratio: 1:1
- Shares After Bonus: 400 original + 400 bonus = 800 shares
Current Valuation (as of March 21, 2025):
- Total Shares Held: 800
- Current Share Price: ₹3,597.45
- Total Investment Value: 800 shares × ₹3,597.45 = ₹2,877,960
Summary:
- Initial Investment (2004): ₹85,000
- Investment Value (2025): ₹2,877,960
- Total Appreciation: Approximately 3,285% over 21 years
This calculation illustrates the significant growth potential of long-term investments, especially when companies reward shareholders with bonus shares.
Investing in 100 shares of Tata Consultancy Services (TCS) during its 2004 IPO at ₹850 per share would have resulted in significant dividend earnings over the years, in addition to capital appreciation. Here's a detailed breakdown:
Initial Investment (2004):
- Shares Purchased: 100
- Purchase Price per Share: ₹850
- Total Investment: ₹85,000
Bonus Issues: TCS has announced several bonus issues since its listing:
-
2006 Bonus Issue:
- Bonus Ratio: 1:1 (For every 1 share held, 1 additional share was issued)
- Shares After Bonus: 100 original + 100 bonus = 200 shares
-
2009 Bonus Issue:
- Bonus Ratio: 1:1
- Shares After Bonus: 200 original + 200 bonus = 400 shares
-
2018 Bonus Issue:
- Bonus Ratio: 1:1
- Shares After Bonus: 400 original + 400 bonus = 800 shares
Dividend Earnings: TCS has a consistent history of dividend payments, including interim, final, and special dividends. The dividend amounts have varied annually, reflecting the company's profitability and dividend policy.
To calculate the total dividends earned from 2004 to 2025, we would need the specific dividend amounts per share for each year. However, as an example, if TCS paid an average annual dividend of ₹50 per share over this period, the total dividends earned would be:
- Total Shares Held: 800
- Average Annual Dividend per Share: ₹50
- Total Annual Dividend: 800 shares × ₹50 = ₹40,000
- Total Dividends Over 21 Years: ₹40,000 × 21 = ₹840,000
Note: The actual dividend amounts have varied each year, and the above calculation is a simplified estimation. For precise figures, one would need to refer to TCS's official dividend history for each fiscal year.
Current Valuation (as of March 21, 2025):
- Total Shares Held: 800
- Current Share Price: ₹3,597.45
- Total Investment Value: 800 shares × ₹3,597.45 = ₹2,877,960
Summary:
- Initial Investment (2004): ₹85,000
- Total Dividends Earned (Estimated): ₹840,000
- Current Investment Value (2025): ₹2,877,960
- Total Returns (Dividends + Capital Appreciation): ₹840,000 + ₹2,877,960 = ₹3,717,960
This calculation illustrates the substantial returns from long-term investments in TCS, combining both dividend income and capital appreciation.
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