Multibagger stock: As Rome was not built in a day, a stock market investor can’t become rich overnight. It is often said that money is not in buying and selling stocks but in waiting. This rule also applies to an IPO (Initial Public Offering) investor. If an IPO investor is convinced about a company’s business prospects, then irrespective of size, one should stick with one’s conviction and hold the stock as long as possible. A stock split is a corporate action that increases the number of a company’s outstanding shares by dividing each share and reducing its price. This does not affect the company’s market value but makes the stock more affordable for smaller investors.
An IPO investor is advised to hold the scrip as long as possible to create wealth on the premium that the company’s promoters have offered to its investors in the primary market. So, by holding a stock for a long term after share allocation, an allottee enjoys the benefit of wealth creation.
MOS Utility share price history
To truly grasp the potential for wealth creation through long-term investment, let’s delve into the inspiring journey of MOS Utility shares. Shares of this company were offered in the Indian primary market in March 2023. The NSE SME IPO was offered at a price band of ₹72 to ₹76 per equity share. The SME stock was listed on the NSE SME Emerge platform on 18th April 2023. The SME stock had a positive listing as it opened at ₹90 apiece, delivering around an 18.50 percent premium against the upper price band of ₹76 per equity share. However, the stock not only delivered strong listing gain but also gave enough wealth creation opportunities to the lucky allottees post-listing.
On Friday last week, MOS Utility’s share price ended at around ₹212, which means that if an allottee had remained invested in this SME stock despite its strong debut on Dalal Street, the absolute value of one investment would have grown around 180 percent.
₹1.21 lakh turns to ₹3.39 lakh
A bidder was allowed to apply for the SME IPO in lots, and one lot of the MOS Utility IPO comprised 1600 company shares. So, the minimum amount required to apply for the NSE SME IPO was ₹1,21,600 ( ₹76 x 1600), which grew to ₹3,39,200 ( ₹212 x 1600).
MOS Utility news
Recently, the company declared to foray into the solar business, stating, “To manufacture, assemble, purchase, import, export, and otherwise deal in India or abroad in all types of solar PV modules, cells, batteries, energy storage devices, conversion and generation devices, appliances, gadgets, equipment, and products, including power packs, power supplies, generators, solar panels, chargers, and sub-assemblies, components, parts, and accessories thereof and to engage in all connected business related to solar.”
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