“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," Motherson Sumi announced in an exchange filing on Tuesday. 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).
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. 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.
During Q1 FY23, the company said it has realigned its operations at Bengaluru and Chennai to cater to increased customer requirements. Further, the company said it is adding a new facility in Chennai to support the growth in the region.
“The Indian automotive industry continued to face semi-conductor shortages and supply chain constrains during the quarter, thereby impacting ability to achieve full production volumes to meet the strong market demand. The company expects gradual improvement going forward as supply chain issues ease though inflationary environment persists," said MSWIL Chairman Vivek Chaand Sehgal.
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.
