In this article, we will discuss about how ₹10,000 invested in ITC IPO turned to worth Rs. 69 Crore in 2023 (24/07/2023).
Kolkata-based company’s IPO was at an issue price of ₹3 per share. ITC shares were listed on Indian stock exchanges in 1970.
- Rs. 10,000 invested in ITC IPO at an issue price of ₹3 per share, got around 3,333 shares.
- Rs. 10,000 invested in ITC IPO in 1970 turned to Rs. 69 Crore in 2023 (24/07/ 2023).
The above wealth was created through long term investment in ITC, shareholders got the benefits from the corporate actions like Bonus and stock split etc. Here we have not considered the return which investors earned through Dividends.
History of ITC Ltd.
ITC Limited, formerly known as the Imperial Tobacco Company of India Limited, is a prominent Indian conglomerate with diversified business interests, including tobacco, hotels, agri-business, fast-moving consumer goods (FMCG), paper and packaging, and information technology.
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Here is a brief history of the ITC:
- In 1910: ITC was founded by a British company, the Imperial Tobacco Company. It was established as a subsidiary of the Imperial Tobacco Company to enter the Indian tobacco market. The British American Tobacco Company (BAT) later became the parent company of ITC.
- 1947: Post-independence, ITC becomes an Indian-owned entity.
- 1960s-1970s: Diversified into hotels with the ITC WelcomHotel brand, as well as packaging, paper, and agri-business.
- 2000s: Entered the fast-moving consumer goods (FMCG) sector, marking a significant shift in its portfolio.
- 2000s-2010s: Continued to expand its FMCG business and introduced brands like Aashirvaad, Bingo!, Sunfeast, and more.
- Ongoing: Emphasizes sustainability and social responsibility, undertaking various initiatives in agriculture and rural development. Operates a chain of luxury hotels under the ITC Hotels brand.
ITC is listed on both the exchanges (Bombay Stock Exchange and the National Stock Exchange) of India.
History of ITC Bonus and Stock Split
ITC has issued bonus shares multiple times and split its shares over the years. Here is a list of bonus and stock split of ITC in its history of 1970-2023.
ITC Investment growth:
| Year | Action (Bonus & Stock Split) | Number of Shares | Face Value |
|---|---|---|---|
| 1970 | Initial Investment | 3,333 | Rs. 10 |
| 1978 | 1:5 Bonus | 3,999 | Rs. 10 |
| 1980 | 1:5 Bonus | 4,798 | Rs. 10 |
| 1989 | 1:1 Bonus | 9,596 | Rs. 10 |
| 1991 | 3:5 Bonus | 153,53 | Rs. 10 |
| 1994 | 1:1 Bonus | 30,706 | Rs. 10 |
| 2005 | 1:2 Bonus | 46,059 | Rs. 10 |
| 2005 | Stock split to FV Rs.1 | 460,590 | Rs. 1 |
| 2010 | 1:1 Bonus | 921,180 | Rs. 1 |
| 2016 | 1:2 Bonus | 1,381,700 | Rs. 1 |
Investment in 1970
If someone invested Rs. 10,000 in ITC IPO in 1970 at an issue price of ₹3 per share, total 3,333 shares are allotted.
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- In 1970, shares were 3,333 and stock IPO price was Rs. 3.
- Rs.3.00× 3333 = Rs. 10,000 invested
Scenario-1
If someone invested Rs. 10,000 in ITC IPO in 1970, it turned to Rs. 69 Crore in 2023 (24/07/ 2023).
- On 24/07/2023, shares were 1,381,700 considering bonus & stock split and stock price was Rs. 499.70.
- Rs.499.70× 1,381,700 = Rs. 69,0470,469 i.e. around 69.05 crore.
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Scenario-2
If someone invested Rs. 10,000 in ITC IPO in 1970, it turned to Rs. 61.23 Crore in 2023 (05/09/ 2023) as the stock prices went down.
- On 05/09/ 2023, shares were 1,381,700 considering bonus & stock split and stock price was Rs. 443.10.
- Rs.443.10× 1,381,700 = Rs. 612,262,287 i.e. around 61.23 crore.
Must Read: Rs. 10,000 Invested in Wipro in 1980s turned to Rs. 1894 Crore
It’s also important to remember that predicting the market’s movements is very challenging, and determining the ideal moments to buy or sell shares is a difficult task.
In most cases, it’s wiser to focus on long-term investments rather than attempting to predict short-term market fluctuations.
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That’s the reason we have taken 2 scenarios of ITC when someone might choose to sell their shares in different time frame which was between Rs. 61 to 69 crores.
