The board has decided to offer a premium of Rs 55 per share on a face value of Rs 10. It also proposed to issue 11 per cent redeemable cumulative preference shares with a face value of Rs 100 per share, not exceeding the aggregate value of Rs 50 crore.

The statement said the proposed preferential issues are subject to the approval of the shareholders in the forth coming general meeting and as per Sebi guidelines. If the preferential allotment comes through, ITC's stake in ITC Bhadrachalam will go up to 51 pc from the existing 37 pc. ITC Bhadrachalam had reported a loss of Rs 48.96 cr for the fiscal 1997-98, after it had written-off the Rs 40 croreloss incurred by its financial arm.