Kolkata: Shares of consumer goods and cigarette maker ITC Ltd rose to a 19-year high of Rs299.70 apiece on the Bombay Stock Exchange (BSE), according to Bloomberg data, after it announced on Friday that it would issue one free share for each held in the company.
ITC’s board on Friday approved a 1:1 bonus issue. The company would seek shareholders’ approval at its annual general meeting on 23 July to double its authorized capital to Rs1,000 crore, ITC said in a stock market filing.
The company’s shares eventually closed on the BSE at Rs294.20 apiece, marginally higher than Thursday, while the bourse’s benchmark index Sensex closed 46 points lower at 17,570 points.
ITC turns 100 on 24 August and it wishes reward shareholders for their unstinted support, the company said in a statement.
ITC had last issued bonus shares in 2005. That year it had offered one free share for every two held in the company.