Samvardhan Motherson International Limited (earlier known as Motherson Sumi Systems Limited) has been one of the Indian companies that has consistently rewarded its shareholders over a long period of time by issuing bonus shares. The auto ancillary company has announced bonus issues six times in the last 10 years since 2012, all in the ratio 1:2.
The company’s recent bonus share issue was announced in August this year as the board recommended the issue in the ratio of 1:2 subject to the approval of the shareholders. “The Board of Directors of the Company in its meeting held on 16th August, 2022, has recommended to issue” bonus share In the ratio of 1 (one) bonus equity share against 2 (two) existing equity shares, subject to the approval of the shareholders,” the company had informed in an exchange filing.
The company said the bonus shares would be issued from the securities premium account. Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
Prior to the recent bonus issue announcement, the last five bonus issues were made by the company in October 2018, July 2017, July 2015, December 2013 and October 2012, all in the ratio of 1:2 as per Capitalline data.
Motherson Group is a leading manufacturer of parts for the automotive and transportation industries. As part of the group’s restructuring activity, Motherson Sumi Systems Limited (MSSL) has now been renamed. Samvardhan Motherson International Ltd. (Samil). For the first quarter ended June 2022, Samvardhan Motherson’s net profit rises to 141 crore, while its revenue was 17,712 crore during Q1 FY23.
The de-merger of the Domestic Wiring Harness (DWH) business and the merger of the parent entity took place in January this year and the share listing of Motherson Sumi Wiring India Limited (MSWIL) took place in March. MSWIL Promotion is a joint venture of Motherson International Limited (SAMIL) and Sumitomo Wiring Systems.
In April last year, MSSL had informed the stock exchanges that the public shareholders voted in favor of the proposal with an overwhelming majority, paving the way for the successful completion of the proposed restructuring.
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