ITC board proposes 1:1 bonus issue to mark centenary

The board of diversified group ITC Ltd today proposed a centenary issue of bonus shares in the ratio of 1:1, subject to shareholders' approval at the annual general meeting on 23 July 2010.

ITC, which completed 100 years in August 2010, said the issue is to acknowledge the unstinted support of shareholders all through the company's growth and transformation.

The issue of one share of Re1 face value for every Re1 share value share held in the company would increase the company's authorised share capital from Rs500 crore to rs1,000 crore, ITC said in a communication to stock markets.

From a cigarette manufacturer, ITC has evolved into a multi-business conglomerate and is today the leading FMCG company in India, the second largest hotel chain, market leader in the Indian paperboard and packaging industry and the country's foremost agri-business player. Additionally, its wholly owned subsidiary is one of India's fastest growing information technology companies in the mid-tier segment.

Over the last fifteen years, the company's post-tax profits recorded a compounded annual growth of 21.7 per cent. Total shareholder returns, measured in terms of increase in market capitalisation and dividends, grew at a compound rate of 24.3 per cent during this period.

ITC today is one of India's most admired and valuable corporations with a market capitalisation in excess of Rs1,00,000 crore.

ITC's businesses have also generated sustainable livelihoods for over 5 million people.

The company reported a 24.4 per cent rise in its post-tax profit at Rs.4061.00 crore while pre-tax profits rose 24.7 per cent to Rs6,015.31 crore. Earnings per share for the year stands at Rs10.73 (previous year: Rs8.66).