ITC to give 1:2 bonus, split shares

The ITC Ltd board today decided to seek approval from the company's shareholders for resolutions relating to a split of the company's Rs 10 shares into shares of Rs 1 each, along with expansion of its authorised share capital and payment of one bonus share of Rs 1 for every two shares held.

ITC made its last issue of bonus shares in 1994, when it issued one share for every share held. In the past, ITC had issued bonus shares in 1978 in the ratio of one share for every five shares held, and then again in 1980, giving away one share for every five shares.

In 1989, shareholders were rewarded with one share for every one share held, and in 1991 with three shares for every five shares held.

ITC had on May 27 informed the exchanges that the matter would be considered by the board at its meeting today. Between that day and today, the ITC share price has risen from Rs 1531.65 to Rs 1546 on the National Stock Exchange and from Rs 1531.50 to Rs 1546 on the Bombay Stock Exchange.

The resolutions will be placed for approval of shareholders at the company's 94th annual general meeting scheduled to be held in Kolkata on July 29.

The sub-division of the ordinary shares of the face value of Rs 10 each to the face value of Re 1 each will raise the number of paid-up shares of the company from 248,097,657 shares of Rs 10 to 2,480,976,570 shares and improve liquidity, said sources here.