Understanding the Potential Wealth from Unclaimed ITC Shares

ITC Limited's remarkable growth journey over a century has translated into substantial profits for its investors. The company's top-line growth from 1970 to 2014 increased from Rs. 145 crore to over Rs. 48,000 crore in 2014. Its profit after tax surged from Rs. 4 crores to cross Rs. 8,700 crores, with market capitalisation expanding from around Rs. 35 crores to more than Rs. 2,75,000 crore.

This growth is reflected in the share prices as well.

Let's consider a hypothetical scenario:

Imagine you purchased 100 shares of ITC Limited in 2000 at just Rs. 15 per share.

Total Investment = 100 x 15 = Rs. 1500

Fast forward to 2022, the value of the shares is 16 lacs. So, 1500/- investment jumped to 20 lacs in 2023.

Let me explain how

1. In 2005, a stock split occurred at a ratio of 10:1, resulting in 1000 shares.
2. Bonus shares were issued in 2001 at a ratio of 1:2, increasing the shares to 1500.
3. Another bonus in 2001 at a ratio of 1:1 led to 3000 shares.
4. Yet another bonus in 2016 at a ratio of 1:2, totalling 4500 shares.

So, if you initially invested in 100 shares in 2000, you now own 4500 shares due to bonus issues and stock splits.

Current Market Price of ITC Limited (as of October 2023) = Rs. 442 per share

Total Value of Investment in 2022 = 4500 x 442 = Approximately Rs. 20 lakhs

Suppose you are among those whose ITC Limited shares have ended up in the Investor Education and Protection Fund (IEPF).

In that case, you might be sitting on substantial wealth, including bonus shares and dividends. With such a staggering figure at your disposal, claiming your unclaimed ITC Limited shares and dividends is imperative.

Why Have Your ITC Limited Unclaimed Shares Gone to IEPF?

As per Government regulations, dividends on shares unclaimed for seven or more consecutive years must be transferred to the Investor Education and Protection Fund (IEPF) by the respective company. This transfer to IEPF becomes mandatory if dividends remain unclaimed for seven consecutive years. Previously, companies would exploit investors' unawareness and retain unclaimed dividends. Realizing this oversight, the government introduced the IEPF, compelling companies to transfer unclaimed shares that haven't been claimed for seven years straight.

Understanding IEPF and Its Purpose

The Government of India established the Investor Education and Protection Fund (IEPF) on September 7, 2016, under Section 125 of the Companies Act, 2013. IEPF's key responsibilities include refunding and recovering shares, matured deposits, debentures, and unpaid dividends and promoting investor awareness. It also ensures reimbursement of legal expenses incurred during action suits by depositors.

Procedure for Claiming Dividends and Shares from ITC Limited via IEPF Authority

IEPF stands for Investors Education and Provident Fund. To claim through IEPF, follow these steps:

1. Access the IEPF-5 form on the MCA portal from the IEPF website and carefully follow the instructions.
2. After completing the form, submit it to receive an acknowledgement with a "Submit Request Number" (SRN) for tracking.
3. Print the form along with the issued acknowledgement.
4. Submit the original copy of the indemnity bond, acknowledgement copy, share certificate, IEPF Form 5, self-attested Aadhaar card, bank account details linked with Aadhaar for receiving the claim, and Demat account number to the Nodal officer (IEPF) of the company at its registered office in an envelope labelled "Claim for refund from IEPF Authority."
5. The company's Nodal officer will verify the claim form and forward it to the IEPF authority. Based on the verification report, the IEPF authority will refund unclaimed shares and dividends to the claimant's account.
6. IEPF authorities must respond to the verification report sent by the company within 60 days.

It's important to note that the refund process from IEPF can be lengthy, potentially taking more than 12 - 36 months.

Checking Whether ITC Limited Shares are in IEPF

To check if your ITC Limited shares are in IEPF, follow these steps:

1. Visit the provided link.
2. Fill in investor details such as name, father's name, folio number, DP-ID, Client-ID, and account number.
3. Click the search button.

In cases where the link doesn't provide accurate information, consider contacting the company's registrar.

The Annual Report of ITC Limited includes the registrar's name and email address.

For further assistance, you can contact:

Nodal Officer:

Mr. R. K. Singhi

Deputy Nodal Officers:

K. Ghosal

S. Madia

Email: isc@itc.in

Address:

ITC LIMITED

37 JAWAHARLAL NEHRU ROAD

KOLKATA, WB 700071