The Company has submitted with Exchange regarding outcome of Board meeting for issue of bonus share.
Awaiting price reaction for this filing.
Samvardhana Motherson International Limited (Symbol: MOTHERSON) has announced a bonus issue in the ratio of 1:2, meaning 1 bonus equity share for every 2 existing shares held. The total issue will be approximately 351.81 crore equity shares of face value ₹1 each, amounting to ₹351.81 crore, funded from the Securities Premium Account (which had a balance of ₹31,310 crore as on March 31, 2025). The board approved this on May 29, 2025 to mark the 50th anniversary of the Motherson Group (founded 1975) and in recognition of strong FY25 financials. Post-issue paid-up equity capital will rise to ₹1,055.44 crore from ₹703.63 crore. Shareholder approval will be sought via Postal Ballot, and bonus shares are expected to be credited by July 28, 2025.
Bonus shares are essentially free additional shares for existing shareholders and are typically viewed positively, though the stock price adjusts downward proportionally on the ex-date. Shareholders will see their share count increase by 50% with no cash outflow, but per-share metrics like EPS and price will be diluted accordingly.