Multibagger SME IPO: ₹1.3 lakh of allottees turns to ₹9.60 lakh in six years

Multibagger IPO: The initial public offering (IPO) of Shreeji Translogistics Ltd is one of the multibagger IPOs that Indian stock market has produced in recent years. Shreeji Translogistics IPO was launched in September 2017 and it was proposed for listing on BSE SME exchange. The fixed price issue was offered at a price of ₹130 per equity share and the stock had a strong debut on Dalal Street. Shreeji Translogistics shares listed on BSE SME exchange at ₹156 apiece levels, delivering 20 per cent listing premium to the lucky allottees. However, the dream run for long term investors didn't ended here only. The company has awarded its loyal shareholders from its capital reserves through announcement of interim and other dividends, issuance of bonus shares and stock split.

Bonus shares

After strong listing on BSE SME exchange, Shreeji Translogistics Ltd announced bonus shares in 2:1 ratio. This means, the SME company awarded two bonus shares for every one share held by the eligible shareholders of the company. As per the information available on BSE website, the company had traded ex-bonus on 14th October 2019 for issuance of 2:1 bonus shares. So, shareholding of an eligible shareholder went up three times after issuance of bonus shares.

Stock split

Later on, the SME company decided stock subdivision to attract small investors as well and enhance trade volume of the company. The company board declared stock subdivision in 1:5 ratio means one share of the company with face value of ₹10 per share were sub-divided into five shares of face value ₹2 per equity share. The SME stock traded ex-split on 15th February 2023. So, shareholding of a shareholder went up five times after the stock split.

Bonus share, stock split impact

When Shreeji Translogistics IPO was launched, the public issue was offered at a fixed price of ₹130 apiece and a bidder was allowed to apply in lots. One lot of Shreeji Translogistics IPO comprised 1,000 company shares that means a lucky allottee would have invested at least ₹1.30 lakh in this SME IPO.

If a lucky allottee had remained invested in this SME stock despite strong listing premium, its shareholding in the company would have become 3,000 after issuance of 2:1 bonus shares in October 2019. Likewise, these 3,000 shares would have surged to 15,000 after 1:5 stock split in February 2023.

₹1.30 lakh turns to ₹9.56 lakh

As Shreeji Translogistics share price today is around ₹64 apiece. Absolute value of lucky allottees' money after six years of share listing would have surged to ₹9.60 lakh today.

Shreeji Translogistics news

In latest exchange communication, the small-cap company has informed Indian stock market exchanges about the successful renewal of contract with Singapore Airlines, a renowned and esteemed airline company. With this renewed contract, STL will further strengthen its collaboration with Singapore Airlines, utilizing their extensive network and resources.

In FY23, the company reported revenue of operations at ₹200.88 crore (FY23), a 20.58 per cent Growth YoY. The EBITDA jumped 20.93 per cent YoY, from ₹17.09 crore (FY22) to ₹20.67 crore (FY23). PAT came in at ₹10.86 crore (FY23), a 19.51 per cent growth YoY. For Q4FY23, the company reported revenues at ₹54.28 crore (Q4FY23), a 19.92 per cent growth YoY. The EBITDA was reported at ₹4.91 crore (Q4FY23).