Old Infosys shares a treasure now
Old Infosys shares a treasure now
Through the past 13 years Infosys has shown that it has the technology to make its shareholders smile. In fact, they are laughing all the way to the bank.

New Delhi: It's an investor's dream come true. If you had bought a hundred shares of Infosys worth Rs 9,500 when it floated a public issue in 1993 and held on to them, you could retire comfortably today. That's because those shares are now worth Rs 2 crore.

Through the past 13 years Infosys has shown that it has the technology to make its shareholders smile. In fact, they are laughing all the way to the bank. It did, however, take a while to programme that performance.

It took 23 years for Infosys' revenues to reach a billion dollar. But after that it raced ahead. It will move from $1 billion to $2 billion in only two years. Growing at 50 per cent a year, Infosys' revenues will reach $2 billion this financial year. But in the past 13 years Infosys has spread wealth thick and fast, bringing its shareholders many happy returns.

Infosys' entry on the Indian bourses was hardly auspicious. It floated Rs 13.1-crore IPO in February 1993 at Rs 95 per share. At the time underwriters had to rescue the issue, which almost devolved because of under-subscription.

Infosys entered the market with market cap of Rs 31.8 crore. Today it is about Rs 85,000 crore. On that journey it has created millionaire employees and millionaire shareholders.

A shareholder who bought 100 shares at the IPO would have invested Rs 9,500 in 1993. Infosys offered three 1:1 bonus issues before 2004. That means those 100 shares became 200 in 1994; and 400 in 1997; and 800 in 1999.

Then in 2000, Infosys' share price spiralled to more than Rs 13,000. At the time Infosys split its stock to a face value of Rs 5 from Rs 10. Now a shareholder who held 800 shares would have 1,600.

In 2004 when Infosys entered the billion-dollar club it offered a 3:1 bonus, giving the shareholder with 1,600 shares, 6,400 shares. Those shares are valued at about Rs 1.98 crore.

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