Samvardhana Motherson to Issue Bonus Shares Again: A Look at its History
Samvardhana Motherson to Reward Shareholders with Bonus Shares
Shares of Samvardhana Motherson International Ltd., a leading automobile components manufacturer, are trading with gains on Thursday, May 29, ahead of its fourth quarter results announcement and a proposed issue of bonus shares.
A Record-Breaking Non-Nifty Company
Samvardhana Motherson holds the record for being the non-Nifty company with the most number of bonus issues announced for its shareholders, with a total of 10 bonus issues since 1997. This will be the 11th instance in the last three decades that the company will issue bonus shares.
Bonus Issue History and Details
In all previous instances, the company has issued bonus shares in a 1:2 ratio, meaning eligible shareholders received one bonus share for every two shares they held as of the record date. The record date for this proposed bonus issue has not been disclosed yet.
Financial Performance
For the December quarter, Samvardhana Motherson reported:
- 8% growth in revenue to ₹27,666 crore
- 62% increase in profitability to ₹879 crore
- 13% year-on-year increase in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
- 50 basis points expansion in margins
Stock Performance and Future Outlook
Shares of Samvardhana Motherson are trading 1.8% higher ahead of the results and bonus issue announcement at ₹151.37. The stock has risen 11% in the last one month ahead of the results.
The company’s decision to issue bonus shares again is likely to delight its shareholders, who have seen significant returns in the past. As the company continues to grow and expand its operations, investors will be keeping a close eye on its future performance.
