What is the present worth of Rs. 10,000/- invested in ITC IPO?

India Tobacco Company Limited - ITC Limited

ITC Limited

ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, West Bengal. Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974.

ITC has a diversified presence across industries such as Cigarettes, FMCG, Hotels, Packaging, Paper boards & Specialty Papers and Agribusiness.

ITC is the leading company in tobacco & FMCG sector. ITC is professional managed company and no promoter holding. In tobacco sector Gold flake, Navy cut cigarette under ITC brand. ITC cover 80% share of tobacco sector and also number of brand FMCG sector under in ITC. Presently ITC has Rs 3,14,534 Cr Market Capitalization and present market price on 9th march 2021 is 207 rs.

ITC has launched IPO in 1970 at that time the value of one share of ITC was Rs 3. If in 1970 anybody invested Rs. 10,000 in ITC then he got around 3,335 number of shares. If that person holds these shares till now then Lets find out the present value.

ITC bonus and stock split history
  1. Bonus 1978 - (1:5) = 4,000

  2. Bonus 1980 - (1:5) = 4,800

  3. Bonus 1989 - (1:1) = 9,600

  4. Bonus 1991 - (3;5)= 12,800

  5. Bonus 1994 - (1:1) = 25,600

  6. Bonus 2005 - (1:2)= 38,400

  7. Face value 10 to 1 = 3,84,000 ( stock split in 2005)

  8. Bonus 2010 - (1:1) = 7,68,000

  9. Bonus 2016 - (1;2)= 11,52,000
Present number of shares that man holds is - 11,52,000 shares.
Present price per share is 207 rs. hence total amount will be

11,52,000 * 207 rs  = 23,84,64,000/- rs

Apart from this ITC ltd company give consistent dividend that income is additional to this 23.8 Cr.

In Just 50 years the invested money was multiplied by 23,846 times. this is power of compounding.

Invest and Become Rich

But Investing Rs. 10,000/- in 1970 was easy? 
No, its not because 10,000/- rs. in 1970 was equal to around 4,25,000/- rs. in 2021.

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