Samvardhana Motherson International Limited has informed the exchange about Notice of Postal Ballot.
Awaiting price reaction for this filing.
Samvardhana Motherson International Limited has issued a Postal Ballot notice seeking shareholder approval for a bonus issue in the ratio of 1:2 (one bonus share for every two existing shares held). The bonus shares will have a face value of INR 1 each and will be issued by capitalizing up to INR 351.81 crore from the Securities Premium Account, which stood at INR 31,310 crore on a standalone basis as of March 31, 2025. The move marks the 50th anniversary of the Motherson Group, founded in 1975, and reflects the company's strong financials for FY 2024-25. After the bonus issue, the total paid-up equity share capital will rise to about INR 1,055.44 crore. E-voting will run from June 6, 2025 to July 5, 2025, with results expected on or before July 7, 2025.
If approved, existing shareholders will receive one additional share for every two they hold, increasing the share count by about 50%. While this expands the company's float and may improve liquidity, the share price typically adjusts downward proportionally, so the overall value of holdings remains broadly unchanged. The bonus signals management confidence in the company's financial position.