Home / Markets / Stock Markets /  Motherson Sumi Wiring board to consider bonus shares proposal on 30 Sept

Leading solutions provider to OEMs, Motherson Sumi Wiring India (MSWIL) is considering the issuance of bonus shares to its existing shareholders. The company's board of directors will meet on September 30 to consider the bonus issue proposal. On Tuesday, MSWIL shares traded on a volatile note before ending flat. MSWIL is a joint venture between Samvardhana Motherson International and Sumitomo Wiring Systems.

In its regulatory filing, MSWIL said, "we wish to inform that a meeting of the Board of Directors of the company is scheduled to be held on Friday, September 30, 2022, inter-alia, to consider the proposal for issue of bonus shares to the equity shareholders of the company."

MSWIL shares closed at 84.25 apiece down by 0.53% on BSE. The shares have touched an intraday high and low of 86.35 apiece and 83.65 apiece respectively.

At the closing price, the company's market cap is around 26,605.60 crore.

Generally, bonus shares are issued by a listed company in a certain proportion only to existing shareholders. For example, if a company announces a bonus issue in the ratio of 2:1, then an eligible shareholder will get two bonus shares on their existing one equity share. Thereby, in place of 1 existing equity share, a shareholder gets to hold 3 shares.

Bonus shares are incentives and a shareholder does not need to pay any money for these shares. It needs to be noted that the face value of the equity shares remains the same post bonus issue.

A listed company usually announces bonus shares due to free reserves and surplus in its system.

In the first quarter of FY23, MSWIL's revenue climbed by 50% yoy to 1,671 crore, while PAT and EBITDA jumped by a whopping 107% and 81% year-on-year to 126 crore and 208 crore respectively. In the quarter, MSWIL realigned its operations in Bengaluru and Chennai to cater to increased customer requirements. Further, the company is adding a new facility in Chennai to support the growth in the region.

MSWIL is prepared to meet the customer needs at every stage of the supply chain, from initial product design and validation to tool design and manufacturing, finishing, and processing, assembly, and finally production of integrated cutting-edge Electrical & Electronic Distribution Systems for the power supply or data transfer across vehicles.

The company has a product profile that benefits from favourable industry trends of premiumization, which leads to an increase in automobile electrification, and supports current and future automotive trends

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