A Story Of Hidden Fortune & Long-Term Investment: Forgotten L&T Shares Turn Bengaluru Woman into Millionaire Overnight
In a remarkable turn of fate, a Bengaluru woman recently became a millionaire due to her grandfather’s long-forgotten shares of Larsen & Toubro (L&T), a leading Indian construction company. The story of Priya Sharma, who stumbled upon these shares during the COVID-19 lockdown, highlights both the value of long-term investments and the complexities involved in retrieving dormant assets.
The Discovery
During the COVID-19 lockdown in 2020, Priya Sharma, a resident of Bangalore, decided to review her grandfather's will. This was a time when many people were using the enforced stay-at-home period to sort out personal and family matters. As Priya sifted through the documents, she came across a cache of old share certificates. These were not just any shares; they were 500 shares of Larsen & Toubro, a prominent blue-chip company known for its significant role in infrastructure development and engineering.
Her grandfather had acquired these shares in 2004, but they had remained largely untouched over the years. This was due to their dormant status and the fact that the shares had not been actively managed or sold. As the value of L&T shares appreciated over time, Priya's inherited investment grew substantially, ultimately turning her into a crorepati, or millionaire.
The Value Surge
The stocks' value had risen significantly since their acquisition. By the time Priya decided to act on the shares, their worth had skyrocketed to approximately Rs 1.72 crore. This substantial increase was a result of several factors, including the natural appreciation of L&T's stock price and corporate actions such as stock splits and bonus shares.
Stock splits occur when a company issues additional shares to shareholders, effectively splitting existing shares into multiple new ones. For example, in a 1:2 split, each share is divided into two, which doubles the number of shares without affecting the overall value of the investment. Bonus shares, on the other hand, are issued free of charge to existing shareholders based on their current holdings. These corporate actions can significantly enhance the value of the original investment, as was the case with Priya’s shares.
The Challenges in Retrieving the Shares
Despite the lucrative value of the shares, retrieving them was no easy feat. Priya faced numerous administrative and legal challenges. She had to navigate the complex process of proving her ownership and dealing with bureaucratic hurdles. This involved retrieving her grandfather’s records, initiating probate proceedings in Mumbai, and addressing discrepancies in documentation.
Priya began by reaching out to L&T to initiate the process. However, she soon realized that managing the documentation and fulfilling the procedural requirements was beyond her capacity. This is where Share Samadhan, a company specializing in recovering lost investments, came into play.
The Role of Share Samadhan
Share Samadhan played a crucial role in assisting Priya through the complex process. The company is known for its expertise in dealing with lost or forgotten shares and investments. They took on the responsibility of examining Priya’s documentation, including her grandfather’s will, and guiding her through the necessary steps to retrieve the shares.
One of the significant tasks was obtaining a probate of the will, which is a legal process to validate the will and grant the authority to the executor. Share Samadhan worked closely with L&T to update Priya’s KYC (Know Your Customer) data and acquire the comprehensive shareholding statement required for the probate process.
However, the process was not straightforward. L&T identified a mismatch between the name on the share certificate and the official paperwork related to Priya’s grandfather. To resolve this issue, an affidavit was required to reconcile the discrepancies. Additionally, due to the high value of the shares, L&T demanded a surety bond and financial guarantee before issuing duplicate shares.
Priya eventually found a distant relative willing to act as a guarantor, which was another critical step in the process. L&T also required in-person verification to prevent fraudulent claims, adding another layer of complexity to the retrieval process.
The Successful Retrieval
After over a year of diligent effort, Priya finally succeeded in retrieving her grandfather’s shares. She received a duplicate certificate from L&T, marking the end of a long and challenging journey. This process not only highlighted the importance of maintaining and managing investments but also the value of professional assistance in dealing with complex financial and legal matters.
Long-Term Investments Lessons From Millionaire Story
Priya Sharma’s story is a testament to the potential rewards of long-term investments and the impact of diligent management. It underscores the importance of keeping track of investments and ensuring that all legal and administrative requirements are addressed. For those with dormant assets, seeking professional assistance can be crucial in navigating the complexities of recovering valuable investments.