Samvardhana Motherson International Limited has informed the Exchange that the Board of Directors at its meeting held on May 29, 2025, have considered and approved bonus at the ratio of 1 : 2, i.e 1 Equity Shares for every 2 Equity Shares held.
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The Board of Directors of Samvardhana Motherson International Limited, at its meeting held on May 29, 2025, approved a bonus issue of equity shares in the ratio of 1:2. This means shareholders will receive 1 additional equity share for every 2 equity shares they currently hold. The record date and other procedural details for the bonus issue are expected to be announced separately. A bonus issue is a capital allocation action that increases the total number of outstanding shares without any change in the company's underlying market value.
For shareholders, this expands their share count without changing their total investment value, as the share price typically adjusts downward on the ex-date in proportion to the bonus. It can improve liquidity and make the stock more affordable for smaller retail buyers.