3 bonus shares: ITC shares turn ₹1 lakh to ₹1.23 crore in 20 years (2024)

Bonus shares: ITC shares are one of the dividend paying stocks listed on Dalal Street. However, the stock has history of rewarding its long term investors through issuance of bonus shares as well. In last 20 years, ITC has announced bonus shares on three occasions, turning ₹1 lakh of a long term investor into ₹1.23 crore in last two decades time.

ITC bonus history

As per the information available on official website of BSE — bseindia.com, ITC share price has traded ex-bonus on three occasions in last two decades. On 21st September 2005, ITC shares traded ex-bonus stocks for issuance of bonus shares in 1:2 ratio. Means one bonus share was awarded to eligible ITC shareholders for carrying two ITC shares. Likewise, on 3rd August 2010, ITC shares traded ex-bonus for bonus share issuance in 1:1 ratio. Means, one bonus share was awarded to eligible ITC shareholders for holding one ITC stock.

Similarly, ITC shares traded ex-bonus stock on 1st July 2016 for issuance of 1:2 bonus shares. This means, the company awarded one bonus share for every two stocks held by eligible ITC shareholders.

Impact on investment in two decades

If an investor had invested ₹1 lakh in ITC shares twenty years ago, he or she would have got 7,142 ITC shares paying ₹14 per share. After issuance of 1:2 bonus shares in 2005, this shareholding of 7,142 would have turned to 10,713 ITC shares without any investment.

Thereon, after issuance of 1:1 bonus shares in 2010, an investors shareholding would have further surged from 10,713 to 21,426 ITC shares. Similarly, these 21,426 ITC shares would have surged to 32,139 shares after issuance of 1:2 bonus shares.

₹1 lakh turns to ₹1.23 crore

ITC share price ended at ₹383.80 apiece on NSE on Friday. So, if an investor had invested ₹1 lakh in ITC twenty years ago, its ₹1 lakh would have become ₹1.23 crore ( ₹383.80 x 32,139) today, provided the investor had remained invested in the stock throughout the period mentioned above.

ITC dividend history

Apart from bonus paying stocks, ITC shares are one of the dividend paying stocks as well. It traded ex-dividend on 15th February 2023 for payment of ₹6 per equity share interim dividend to its eligible shareholders. In 2022, ITC shares traded ex-dividend in February and May. In the year 2021, ITC shares traded ex-dividend in the month of February and June.

In Covid-hit 2020, ITC shares traded ex-dividend on 6th July 2020 for payment of ₹10.15 per share dividend to its eligible shareholders. As per the information available on BSE website, ITC shares been given dividend to its shareholders every year since 2007.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team