Stock of Motherson Sumi Wiring closed flat today despite board of the firm clearing bonus issue of shares in the ratio of 2:5. This means the firm will issue two shares for every five shares held by the shareholders. Motherson Sumi Wiring stock ended at Rs 87.15 against the previous close of Rs 87 on BSE. The stock stands higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
"The board of directors of the company in its meeting held today i.e September 30, 2022 has subject to the approval of the Shareholders of the company has recommended issue of bonus shares in the ratio of 2 (Two) bonus (fully paid up) Equity Shares against 5 (Five) Equity Shares of Re. 1/- each held in the company," Motherson Sumi Wiring said in an exchange filing.
Total 6.87 lakh shares of the firm changed hands amounting to a turnover of Rs 5.96 crore. Market cap of Motherson Sumi Wiring stood at Rs 27,521 crore on BSE. The bonus shares will be issued from retained earnings / profits, the firm said. The firm had retained earnings (free reserves) of Rs 4,045 million as on March 31, 2022.
The estimated date by which such bonus shares would be credited/dispatched would be within 2 months from the date of board approval i.e. by November 29, 2022. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Motherson Sumi Wiring Ltd is a JV between Samvardhana Motherson International (SAMIL) and Sumitomo Wiring Systems. Motherson Group is a leading producer 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).
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today