Thread by @WealthEnrich

Many #investors are loosing patience as #ITC is not generating returns since a few years.

Lets get the bigger picture

Can you imagine if one would have invested Rs. 1000 (just one thousand rupees) in ITC shares #IPO in 1970, what would be the returns today? @dmuthuk

A Short🧵

Your invested capital in the #ITC #IPO of

Rs. 1 thousand would have become ~ Rs. 2.43 Crores

Yes you have read it RIGHT !!!

That's not it, your would have got some heavy dividend too in all this 51 years .

Check out this real #wealth creation journey of ITC

(cont....)

Year 1970, for Rs. 1000 you would have got around 333 #ITC shares ( IPO price was Rs. 3 per share)

Here's the story of the BONUS and SPLIT

1978: 1:5 bonus
Your total shares = 333 + 333/5 = 399 shares

1980: again 1:5 bonus

Total shares = 399 + 79 = 478/-

(cont....)

1989: 1:1 bonus
Your total shares = 478 + 478 = 956 Shares

1991: 1:3 bonus
Your total shares = 956 + 318 (956/3) = 1274 shares

1994: 1:1 bonus
Your total shares = 1274 + 1274 = 2548

2005: 1:2 bonus
Your total shares = 2548 + 1274 (2548/2) = 3822

The saga continues........

The big #ITC share split happens in 2005
The face value changes from Rs 10 to Rs 1

So your total shares = 3822 *10 = 38220

2010: 1:1 bonus
Your total shares = 38220 +38220 = 76440

2016: 1:2 bonus
your total shares = 76440 + (76440/2) = 1,14,660/-

yes over 1 lakhs shares....

So, today you are having 1,14,600 shares of ITC after 51 years of your first buying in #IPO

Today the price of ITC share is 212.35

So, your total value is 114600 shares @ 212.35 per share is Rs. 2,43,35,310 (over Rs. 2.43 Cr)

TRUE power of compounding

#stocks #investments