S5 E3 : CASE STUDY : HOW INFOSYS CREATED MILLIONAIRES

🎯 Goal: See how ordinary employees and early investors became multi-crore shareholders
📚 A powerful story of technology, trust, and time.

💡 What is Infosys?

  1. One of India’s biggest IT (software) companies

  2. Started in 1981 by 7 friends with just ₹10,000

  3. Today: It’s worth lakhs of crores

You’ve probably seen their name in business news or mutual fund holdings.

But what made Infosys special?

Let’s understand through its wealth creation journey.

📅 Rewind to the 1990s

India was opening up its economy.
Technology demand was rising globally.
But people didn’t know what “IT” even meant.

Infosys quietly built a strong foundation:

  1. Hired smart engineers

  2. Delivered software projects for US & global clients

  3. Started earning in dollars

And in 1993, Infosys went public.

💥 The IPO — A Game-Changer

  1. Infosys IPO price: ₹95 per share

  2. Many investors ignored it (IT was new, risky)

  3. But those who believed… saw something magical

📈 The Growth Story

  1. 1993 — Price: ₹95

    IPO launched

  2. 1999 — Price: ₹800+

    Dotcom boom, global projects grow

  3. 2005 — Price: ₹1,500+

    Infosys becomes IT giant

  4. 2020 — Price: ₹10,000+ (adjusted)

    Includes bonuses, splits, etc.

(Adjusted for multiple stock splits and bonus shares)

If you had just ₹10,000 in Infosys in 1993 and never sold:

💰 It could have grown to ₹2 crore+

That’s not magic. That’s real wealth creation.

👨‍💼 Employee Millionaires

Infosys didn’t just make investors rich.
It created thousands of employee millionaires.

Why?

  1. They gave stock options (ESOPs) to staff

  2. When Infosys shares grew, employees shared the success

  3. Many techies who joined young retired before 40

Infosys showed India how tech + transparency = growth

🧠 What You Can Learn

1. Never Underestimate New Industries

In 1993, IT looked confusing.
Now it’s the backbone of modern business.

2. Invest in Visionary Companies

Infosys founders were not rich, but they were clear about the future.

3. Stock Splits & Bonus Shares Multiply Returns

Infosys gave many such benefits — which grew your shares without buying more.

4. You Don’t Need to Trade Daily

Some of the biggest returns came to those who just held on for years.

5. Working in Good Companies Pays

If your job offers stock options — study and understand them.
Many people became crorepatis without ever trading!

🧪 Mini Mission:

  1. Go to any stock screener (like Screener.in)

  2. Search “Infosys”

  3. Read its company history, dividends, and stock splits

  4. Try to explain Infosys in one simple sentence (like: “They help US clients with software work”)

This is how you build real understanding 📘