Samvardhana Motherson gains after board OKs bonus issue

Samvardhana Motherson International rose 2.89% to Rs 126.30 after the company's board recommended the issue of bonus shares in the ratio of one bonus equity share against two existing equity shares.

The company expects the transaction to be completed within 2 months from the date of board approval i.e. by 15 October 2022.

Consequent to the bonus issue, the company's paid-up equity share capital will increase from Rs 451.76 crore (divided into 451.76 crore shares) to Rs 677.64 crore (divided into 677.64 crore shares).

Samvardhana Motherson International is one of the world's leading specialised automotive component manufacturing companies for OEMs. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. It is currently the largest auto ancillary in India.

The company's consolidated net profit declined 51.24% to Rs 141.22 crore despite an 8.92% rise in sales to Rs 17,453.63 crore in Q1 FY23 over Q1 FY22.

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