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Business News/ Markets / Stock Markets/  Samvardhana Motherson announces bonus shares issue. Key details
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Samvardhana Motherson announces bonus shares issue. Key details

Samvardhana Motherson said that the bonus shares will be issued from securities premium account

Photo: iStockPremium
Photo: iStock

Samvardhana Motherson International Limited's (formerly Motherson Sumi Systems Limited) board met on Tuesday to consider the proposal for bonus equity shares of the company and has therefore recommended the issue in the ratio of 1:2, subject to shareholders' approval. Shares of Samvardhana Motherson surged nearly 3% on the BSE in afternoon deals.

“the Board of Directors of the Company in its meeting held today, i.e., August 16, 2022, has recommended issue of bonus shares in the ratio of 1 (one) bonus equity share against 2 (two) existing equity shares, subject to approval of the shareholders," the company informed in an exchange filing. 

The company said that the bonus shares will be issued from securities premium account. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

The auto component major said that the estimated date by which such bonus shares would be credited/dispatched would be within 2 months from the date of board approval i.e. by October 15, 2022.

Motherson Group is a leading manufacturers of components for the automotive and transport industries. As part of the group's reorganisation activity, the name of Motherson Sumi Systems Limited (MSSL) has now been changed to Samvardhana Motherson International Ltd (SAMIL). 

For the first quarter ended June 2022, Samvardhana Motherson's net profit increased to 141 crore, whereas its revenue was at 17,712 crore during Q1 FY23. “The market demand remains strong, however, due to various supply chain constraints including chip shortages, production volumes of OEMs continued to fluctuate. The passenger car sales have shown improving trend from April to June. This quarter’s results are to be seen in the backdrop of continued high inflation, elevated freight, energy costs etc," said Vivek Chaand Sehgal, Chairman, Motherson.

The de-merger of domestic wiring harness (DWH) business and merger with parent entity happened in January this year and the shares listing of Motherson Sumi Wiring India Limited (MSWIL) happened in March. MSWIL is a joint venture between Samvardhana Motherson International Ltd (SAMIL) and Sumitomo Wiring Systems.

In April last year, MSSL had informed stock exchanges that public shareholders have voted in favour of the proposal with an overwhelming majority, paving the way for successful completion of the proposed restructuring.

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Updated: 16 Aug 2022, 12:44 PM IST
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