'The Power of Holding Equity,' Forgotten SBI Shares Bought for ₹500 in 1994

Forgotten SBI Shares Bought for ₹500 in 1994: SBI shares had been purchased by a couple in the 1950s, but they had forgotten about them over the years. Their grandson found the certificates when organizing the family's assets.

A man shared the information on X and, as expected, it went viral. The shares, which were once forgotten, are now worth lakhs of rupees.

While sharing a picture on X, Dr Tanmay Motiwala wrote, "The power of holding equity.".

The power of holding equity ????

My Grand parents had purchased SBI shares worth 500 Rs in 1994.
They had forgotten about it. Infact they had no idea why they purchased it and if they even hold it.

I found some such certificates while consolidating family's holdings in a… pic.twitter.com/GdO7qAJXXL

— Dr. Tanmay Motiwala (@Least_ordinary) March 28, 2024

He added, “My grandparents had purchased SBI shares worth 500 ₹in 1994. They had forgotten about it. In fact, they had no idea why they purchased it and if they even held it.”

Further, Motiwala said, "I found some of these certificates while consolidating family holdings (I had already sent for their conversion to Demat)."

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His post garnered a lot of attention on X. Many people asked what the SBI share price was. “It is about 3.75L excluding dividends. It's not a big amount, but it will be 750x in 30 years. Indeed, it is a big amount,” he replied.

He also shared how he got his family stock certificates converted into a demat. We actually took help from an advisor/consultant, as the process itself can be very tedious and time-consuming (names, addresses, signatures may be misspelled). Even with an advisor, it took time, but the majority of certificates have been converted.”

Furthermore, Motiwala said that he doesn't need cash right now, so he plans to hold these shares.

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Both posts have gained a great deal of attention since they were shared. Many even commented on the posts.

As one individual shared, "I had forgotten Kotak's small cap fund growth of 250,000 invested in 2005. I discovered through one paper two years ago that it is today 5,30,000 17.4% XIRR."

“The real question is why is it valued so low after 30 years?” asked another. Motiwala replied and wrote, “Aur kitni valuation chaiye 30 years me? 750 times already. (Roughly between 20-25% CAGR). ₹500 hi the.”

“Considering the splits, it should be much more than this, somewhere around 2.25 crore,” wrote another.

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