What will be the value of Rs 500 invested in an asset 4 years ago? If you had invested this amount in FD or gold, then in any case this amount would have remained below Rs 1000. On the other hand, you would have got some higher returns on investing in Nifty. Some big stocks would have multiplied your amount. But if we tell you that there has been a stock where if you had invested only Rs 500 4 years ago, then today you would have got so much money that you could have bought a brand new entry level car, that too at on-road price... then maybe you will not believe it. However, such a high return has been given in one stock and this stock is of packaged food segment company Integrated Industries, which was a penny stock 4 years ago. In the last 4 years, the stock has given investors a return of more than one lakh percent. That is, every hundred rupees became one lakh rupees during this period. After this sharp rise in the stock, the company has announced a split.
How much return was received?
In September 2020, the stock remained around Rs 0.35 per share. In January 2021, the stock reached above one rupee per share. Whereas in February 2023, the stock reached above Rs 10. Currently, the stock is at the level of 399 and its highest level of the year is Rs 438. That is, the stock has given a return of more than 1 lakh percent in the last 4 years, while from February 2023 till now i.e. in less than 2 years, the stock has become about 40 times. That is, for the amount you are getting one share today, 4 years ago you would have got 1140 shares for the same amount, whereas in the beginning of the year 2023, you would have got 40 shares for the price equal to one share today.
If an investor had invested Rs 500 in the stock in the month of September 2020, he would have got 1428 shares. If this investor had not withdrawn money from it, then today at the price of 398.7 on BSE, the amount of investment of that investor would have increased to Rs 5.69 lakh. That is, with a wait of just 4 years, this stock would have got you a new car today for just Rs 500.
Company announced split
The company has announced the split of the stock. This stock with a face value of Rs 10 will now be divided into 10 stocks with a face value of one rupee and the share price will decrease in the same proportion. The record date of the split is October 1.
What to keep in mind
Getting such high returns in penny stocks is not a new thing. But market experts believe that one should not invest money in a penny stock just by looking at these examples. Because there can be many reasons for the rise in such stocks. Which can include anything from a boom in business to a scheme to defraud investors. It is advisable to always be cautious about investing in the market and be more practical about returns. Avoid investing without thinking, no matter how attractive the bet seems. Always give priority to strong stocks while investing. If you want to invest money in penny stocks, then understand the risks of investment well and invest only that much amount which you can afford to lose.
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