WIPRO Wealth Creation Story:

Assume you bought 100 shares of WIPRO in 1990. At that time, the face
value of one stock of WIPRO was Rs 10. For simplicity, we are considering
that you bought the stocks at the face value. Hence, your initial investment
would have been Rs 1,000.
(Note: Stocks in the Indian stock market rarely trade below their face value.
Most of the shares trade at a high premium compared to their face value.
However, there has been a number of adjustment in the share price of the
company since 1990 because of various bonuses and stock split. Therefore,
just for simplicity, we are considering that you purchased the stock at the face
value. Moreover, when you compare the appreciated value with the purchase
price, you’ll understand that it wouldn’t have made much difference even if
you had bought this stock at a little premium.)
Since 1990, WIPRO has given seven bonuses to its shareholders and one
stock split (till 2017). Let’s also assume that you didn’t touch the stock after
buying. This means that you didn’t sell any stock since the purchase and also
avoided any profit booking.

Now, let us analyze the bonuses and stock split of WIPRO for past 27 years.
 1990: 100 shares
 1992: 200 shares (1:1 bonus on 12-08-1992)
 1995: 400 shares (1:1 bonus on 24-02-1995)
 1997: 1,200 shares (2:1 bonus on 20-10-1997)
 1999: 6,000 shares (5:1 split on 27-09-1999)
 2004: 18,000 shares (2:1 bonus on 25-06-2004)
 2005: 36,000 shares (1:1 bonus on 22-08-2005)
 2010: 60,000 shares (2:3 bonus on 15-06-2010)
 2017: 1,20,000 shares (1:1 bonus on 13-06-2017)

In short, 100 shares of WIPRO bought in 1990 would have turned out to be
1,20,000 share by 2017.
 Capital Appreciation:
Let’s find out the current worth of the 100 shares that you bought in 1990.
As of May 2018, the market price of one share of Wipro is Rs 273.75
Total Number of share= 1,20,000
Net Value = Rs 273.75 * 1,20,000 = Rs 3,28,50,000.
The net appreciated value would be worth over 3.28
crores.
Your small investment in the 100 shares of WIPRO in 1990 would have turned
out to be worth over 3.28 crores in next 27 years.

Don’t forget the dividends…

In the last 27 years, WIPRO has given a decent annual dividend to its
shareholders. However, here we are just considering the dividends for the last
four years.
Annual dividend per share by WIPRO for last 4 years–
 2014: Rs 8.00
 2015: Rs 12.00
 2016: Rs 6.00
 2017: Rs 4.00
Annual dividend received by the shareholders can be calculated using this
formula:
Annual dividend received= Dividend per share * Total Number of shares
 Assuming that you bought 100 shares of WIPRO in 1990, here are the annual
dividends that you would have received:
 Dividends (2014) = Rs 8 * 60,000 = Rs 4,80,000
 Dividends (2015) = Rs 12 * 60,000 = Rs 7,20,000
 And Dividends (2016) = Rs 6 * 60,000 = Rs 3,60,000
Moreover, for the year 2017, the total number of shares in your portfolio would
have turned out to be 1,20,000.
Dividends (2017) = Rs 4 * 1,20,000 = Rs 4,80,000
Overall, you would have received dividends worth Rs 4,80,000 in just an year
by literally doing nothing.
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The best part…

Even if you don’t sell your stocks, you are holding a total of 1,20,000 shares in
your portfolio and hence are eligible to get dividends on all those shares.
Moreover, dividends increase over time. If the company announces a bigger
dividend next year, you will receive even a bigger passive income through
dividends. In addition, if the company announces any bonuses in future, even
your grandchildren lives can be considered as secured