FMCG major ITC is planning to issue bonus shares in the ratio of one share for every equity share held.
It is also planning to double its authorised share capital.
The board of directors of the company which met here on Friday has made these recommendations, which will now be put up for shareholders' approval at the annual general meeting on July 23. ITC turns 100 this August.
In a notice to stock exchanges, the company said that one bonus share of Re. 1 would be issued for every fully paid-up share of equivalent value.
A company release said that this was a centenary issue in acknowledgement of support given to the company by the shareholders.
The authorised share capital of the company is proposed to be increased from Rs. 500 crore divided into 500 crore shares of Re. 1 each to Rs. 1,000 crore divided into 1,000 crore shares of Re. 1 each. It may be mentioned that bolstered by a 24 per cent increase in its post-tax profit in 2009-10, the ITC board had announced its plans of rewarding its shareholders with a special centenary dividend and had also said that it is planning to consider the issue of bonus shares.
The company had last issued bonus shares in 2005 when one share was offered for every two shares held. During that time it hiked its share capital from Rs. 300 crore.
The 2005 bonus issue came after a 11-year gap.
The diversified group is making major investments in the hospitality business even as this segment of operations grapples with an adverse business environment.
ITC is at present setting up luxury properties in Chennai and Kolkata.
