Motherson Sumi Wiring announces free share issue at a ratio of 2:5. The key things to know

Motherson Sumi Wiring India Ltd (MSWIL) announced on Friday that its board of directors at the meeting of September 30, 2022 recommended the issuance of free shares of the company in a ratio of 2:5, which means that the company will issue 2 bonus shares for every 5 shares held, subject to shareholder approval.

“The board of directors of the company, at its meeting held today, i.e. September 30, 2022, has, subject to the approval of the shareholders of the company, recommended the issuance of ‘free shares in the ratio of 2 (Two) free (fully paid) Shares to 5 (five) equity shares of Re. 1/- each held in the company,’ said Motherson Sumi Wiring today in a exchange deposit.

The company said the free shares will be issued from retained earnings/earnings. It has retained earnings (free reserves) of 4,045 million as of March 31, 2022. The estimated date when these free shares would be credited/sent would be within 2 months of the Board approval date, i.e. before November 29, 2022. Free shares are additional fully paid shares issued by a company to its existing shareholders.

Motherson Group is a leading component manufacturer for the automotive and transportation industries. As part of the group reorganization activity, the name of Motherson Sumi Systems Limited (MSSL) was changed to Samvardhana Motherson International Ltd (SAMIL).

MSWIL is a joint venture between Samvardhana Motherson International Ltd (SAMIL) and Sumitomo Wiring Systems. Motherson Sumi Wiring India Ltd announced a near increase in net profit at 126 crore for the first quarter ended June 2022. Total operating revenue increased to 1,671 crore compared to 1,114 crore in the period a year ago.

The spin-off of the Home Wiring (DWH) business and merger with the parent entity took place in January this year and the listing of the shares of Motherson Sumi Wiring India Limited (MSWIL) took place in March.

Shares of Motherson Sumi Wiring were trading more than one percent lower at 85 each on BSE in Friday afternoon deals.

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Sallie R. Loera