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Business News/ Markets / Stock Markets/  Bharat Gears shares trade ex-bonus; stock surges
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Bharat Gears shares trade ex-bonus; stock surges

Bharat Gears announced bonus shares in the ratio of 1:2

(Photo: iStock)Premium
(Photo: iStock)

Shares of Bharat Gears Ltd surged more than 6% to 148 apiece on the BSE in Tuesday's opening deals as the auto ancillary stock started trading ex-bonus, a day ahead of its record date for the bonus issue of the equity shares of the company.

Bharat Gears announced bonus shares in the ratio of 1:2. Simply put, the company will give one bonus share on the existing two equity shares to eligible shareholders. A total of 51,18,35 equity shares having a face value of 10 each are proposed to be issued under the bonus shares. 

The company has fixed September 28 as the record date to determine eligible shareholders for the bonus issue. The company plans to pay the bonus shares within two months from the date of approval by the board of directors on August 24, 2022. 

“We wish to inform you that the members of the Company, in their Annual General Meeting held on Tuesday, September 20,2022, inter alia, considered and approved the issue of Bonus Shares to the members of the Company by way of capitalization of reserves in the ratio of 1:2 i.e. issue of one equity share for every two equity shares held by the members whose names appear in the Register of Members or as the beneficial owner(s) of the Equity Shares of the Company, in the records of the Depositories, on the close of business on the Record Date being September 28, 2022," the company had informed in an exchange filing.

The bonus is out of the company's free reserves is over 5.1 crore. As of March 31, 2022, the company has free reserves of more than 5.8 crore. Post bonus issue, the company's share capital is expected to be more than 15.35 crore compared to the current share capital of over 10.2 crore (pre-bonus issue scenario). Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

The company is a major global supplier of automotive gears and heat treatment furnaces. The company manufactures a wide range of Ring Gears and Pinions, Transmission Gears and Shafts, Differential Gears, Gear Boxes majorly for the automotive industry.

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Published: 27 Sep 2022, 09:21 AM IST
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