BAT's 2020 dividend from ITC increases 67% as Indian firm revises policy

In 2018, the British company turned down ITC's proposal to continue with an equity-based employee stock option.

A change in diversified conglomerate ITC’s dividend policy has fetched a bonanza for its single largest shareholder, British American Tobacco (BAT).

BAT’s annual report for 2020 shows that dividend from ITC was at 386 million pounds compared to 231 million pounds in 2019: an increase of 67 per cent. This is the first time ITC’s revised dividend policy reflected in BAT’s annual report, which follows a financial year ending December 31.

ITC moved to a higher dividend payout as most of its large-scale capital expenditure was in hotels and building the integrated consumer goods manufacturing and logistics facilities.

ITC’s dividend