by In all of the previous instances, the company has issued bonus shares in the 1:2 ratio, meaning eligible shareholders received one bonus share for every two shares that they held as on the record date.
Shares of Samvardhana Motherson International Ltd., the manufacturer of automobile components declined after the company reported its March quarter results on Thursday, May 29.
Additionally, the company’s board has also approved the issue of bonus shares along with its quarterly results.
Samvardhana Motherson will issue bonus shares in the ratio of 1:2, which means, eligible shareholders will receive one bonus share for every two shares they hold as of the record date.
The said bonus issue will be subject to approval of the company’s shareholders at the ensuing Annual General Meeting (AGM) of the company.
Samvardhana Motherson holds the record for being the non-Nifty company with the most number of bonus issues announced for its shareholders.
According to data available, Samvardhana Motherson has announced bonus shares in 1997, 2000, 2005, 2007, 2012, 2013, 2015, 2017, 2018 and 2022. This is the 11th instance in the last three decades that the company has issued bonus shares.
In all of the previous instances, the company has issued bonus shares in the 1:2 ratio, meaning eligible shareholders received one bonus share for every two shares that they held as on the record date.
The record date for this proposed bonus issue has not been disclosed yet.
For the March quarter, Samvardhana Motherson has reported a growth of 6% in its revenue to ₹29,317 crore, while its profitability went up by 19% from last year to ₹1,051 crore.
Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 1.6% year-on-year, while margins narrowed by 70 basis points.
Shares of Samvardhana Motherson are trading 0.5% lower after results and bonus issue announcement at ₹147.99. The stock has risen 11% in the last one month ahead of the results.
