Motherson Sumi bonus action announced – control ratio; the counter jumps more than 4%
Motherson Sumi Bonus Part: Motherson Sumi Wiring India Limited announced on Friday that its board had recommended the issuance of free shares in a ratio of 2:5. This means that an eligible shareholder will receive two free shares out of five existing shares. However, the company said this was subject to shareholder approval.
“Recommended issuance of bonus shares at a ratio of 2 (two) free equity shares (fully paid) to 5 (five) equity shares of Re 1/- each held in the company,” the company said in a filing. regulatory.
On the day the Board of Motherson Sumi Wiring India met to consider the bonus issue proposal, the company’s share soared by more than 4% to Rs 110 each on NSE.
Earlier on Tuesday, the company said in a regulatory filing that a board meeting in this regard was scheduled for Friday, September 30, 2022.
“The company’s blank letter dated September 27, 2022 informed that the meeting of the company’s board of directors was to be held on Friday, September 30, 2022 to consider the proposal to issue free shares to shareholders of the company” , said Motherson Sumi. Wiring India said in the exchange filing.
Samvardhana Motherson Wiring India is a joint venture between Samvardhana Motherson International (SAMIL) and Sumitomo Wiring Systems (SWS). The company was officially known as Motherson Sumi Systems. The company is a leading solution provider for original equipment manufacturers (OEMs) and has a market size of around Rs 26,605 crore.
It is important to specify that free shares are issued by a listed company. They are issued in a certain proportion only to existing shareholders.