Wednesday, 27 June 2012

Power Of Equity


  1. How much can you make in 26 years by just investing Rs.10,000/- initially in any of
    financial instruments?Take a wild guess???

    Let us look at the real example…
If you have subscribed in 100 shares of _____ company with a face value of Rs. 100/- in 1980…
  • In 1981 company declared 1 : 1 bonus = you have 200 shares
  • In 1985 company declared 1 : 1 bonus = you have 400 shares
  • In 1986 company split the share to Rs. 10 = you have 4,000 shares
  • In 1987 company declared 1 : 1 bonus = you have 8,000 shares
  • In 1989 company declared 1 : 1 bonus = you have 16,000 shares
  • In 1992 company declared 1 : 1 bonus = you have 32,000 shares
  • In 1995 company declared 1 : 1 bonus = you have 64,000 shares
  • In 1997 company declared 1 : 2 bonus = you have 1,92,000 shares
  • In 1999 company split the share to Rs. 2 = you have 9,60,000 shares
  • In 2004 company declared 1 : 2 bonus = you have 28,80,000 shares
  • In 2005 company declared 1 : 1 bonus = you have 57,60,000 shares
At the end of 2005 …..........
  • You have 57,60,000 shares of the company
Any guess about the company? (Hint : Its an Indian company)
Any guess about the present valuation?
The result of ‘Power of Compounding’
Your present valuation is about
Rs. 200 Cr. +
&
The company is ‘WIPRO’

Compiled by : SANDIP GINODIA

Thanks ,
Sandip Ginodia
ABHISHEK SECURITIES


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