Samvardhana Motherson surges ~5% as board approves 1:2 bonus issue

16 Aug 2022 , 03:12 PM

Samvardhana Motherson International Limited, formerly Motherson Sumi Systems, announced that its board of directors has recommended issuing bonus shares in the ratio of 1 bonus equity share for every 2 existing equity shares.

Following this development, the company’s counter surged nearly 5% in today’s trade at Rs128.90, against its previous close of Rs122.75 on NSE.

However, the decision still requires the approval of shareholders in the ensuing general meeting. The company intends to complete the entire process within two months from the date of board approval i.e. by October 15, 2022.

After the anticipated bonus issue, company’s share capital would stand increased to Rs677.64 crore.

On a y-o-y basis, the stock is down nearly 44% to date.