“The board of directors of the company in its meeting held today i.e September 30, 2022 has subject to the approval of the Shareholders of the company has recommended issue of bonus shares in the ratio of 2 (Two) bonus (fully paid up) Equity Shares against 5 (Five) Equity Shares of Re. 1/- each held in the company," Motherson Sumi Wiring informed in an exchange filing today.
The company said that the bonus shares will be issued from retained earnings / profits. It has retained earnings (free reserves) of ₹4,045 million as on March 31, 2022. 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 November 29, 2022. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
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).
MSWIL is a joint venture between Samvardhana Motherson International Ltd (SAMIL) and Sumitomo Wiring Systems. Motherson Sumi Wiring India Ltd reported close to two-fold increase in net profit at ₹126 crore for the first quarter ended June 2022. Total revenue from operations rose to ₹1,671 crore compared to ₹1,114 crore in the year-ago period.
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.
Shares of Motherson Sumi Wiring were trading more than a per cent lower at ₹85 apiece on the BSE in Friday's afternoon deals.
