If someone invested 10,000 in ITC IPO. what is the present value?

ITC ltd was incorporated at 1980. ITC is the leading company in tobacco & FMCG sector. ITC is professional managed company and no promotor holding. In tobacco sector gold flake , navy cut e cigarette under ITC brand. ITC cover 80% share of tobacco sector and also no. Of brand FMCG sector under in ITC. Present market cap of ITC is RS 2,50,897 and CMP (current market price ) is RS 203.

ITC launch IPO in 1980 then the value of one share of ITC is RS 3 . in 1980 anybody invested RS 10,000 in ITC he gets RS 3,333. Lets find out the present value.

ITC bonus and stock split history---

1. Bonus 1980—(1:5) = 3,999

2.Bonus 1989 –(1:1) = 7,998

3. Bonus 1991 –(3;5)= 11,197

4. Bonus 1994 –(1:1) = 19,195

5. Bonus 2005 –(1:2)= 28,792

6.Face value 10 to 1 = 287,920 ( stock split in 2005)

7. Bonus 2010 – (1:1) = 575,840

8. Bonus 2016 – (1;2)= 863,760

Present value of ITC 863,760 shares is RS 175,343,280

Apart from these ITC ltd company give consistent dividend.

Means ITC ltd convert your 10,000 to 17.5 crore

Time period – 40 years

Note--- compounding is the 8th wonder of this world.