Man finds grandparents bought ₹5,000 worth SBI shares in 1994. Now the value is…
Upstox
2 min read • Updated: April 6, 2024, 8:47 AM
Summary
The person, identified as Dr Tanmay Motiwala, a paediatric surgeon based in Chandigarh, had initially mentioned an incorrect share purchase value of ₹500. The photo of the share certificate shared by him on his X account led to some netizens pointing out that his grandparents had actually bought shares worth ₹5,000.
A man went viral on social media after he shared that his grandparents had bought State Bank of India (SBI) shares worth ₹5,000 in 1994, and their value has skyrocketed in the last three decades.
The person, identified as Dr Tanmay Motiwala, a paediatric surgeon based in Chandigarh, had initially mentioned an incorrect share purchase value of ₹500. However, the photo of the share certificate shared by him on his X account led to some netizens pointing out that his grandparents had actually bought shares worth ₹5,000.
“So the share price opened at a premium at IPO listing and the buying price would be ₹5000 and not ₹500,” Motiwala himself tweeted in a follow-up post on April 2, as he corrected himself. “I didn't know this part as I calculated on face value based on the certificate I found,” he added.
How much are the SBI shares worth now?
On account of the 1:10 split in 2014, Motiwala holds 500 SBI shares of his grandparents. In the last trading session on April 5, the SBI shares settled at ₹765.90 apiece on the National Stock Exchange (NSE).
At the current market price, the 500 shares whose certificate Motiwala has are worth around ₹3.82 lakh. This shows that the shares have given 76X returns in the last three decades.
The amount may not be too large, “but I guess the underlying message was the power of holding equity over a long time (if you get it right) and not the maths behind it,” Motiwala said.
He added that his grandparents had forgotten about the shares. “Infact they had no idea why they purchased it and if they even hold it,” Motiwala said, noting that he found the certificates while “consolidating family's holdings in a place”.