Image Source: EqutiyBulls
Motherson Sumi Wiring India Ltd. has energized investor sentiment by approving a generous bonus share issue in the ratio of 1:2—granting shareholders one bonus share for every two shares held. The announcement, made following the board meeting on May 29, 2025, comes alongside the company’s robust financial performance and ongoing expansion plans.
Key Highlights:
Bonus Bonanza: The board has approved the issuance of bonus shares in a 1:2 ratio, subject to shareholder approval at the upcoming General Meeting. This marks the second bonus issue in less than three years, following the 2:5 bonus in November 2022.
Shareholder Rewards: The move aims to reward long-term investors, enhance liquidity, and broaden retail participation. The record date for eligibility will be announced soon, with the bonus shares credited after necessary approvals.
Financial Performance: Despite a challenging market, Motherson Sumi Wiring India reported a 12.4% year-on-year revenue growth in Q4 FY25 to ₹2,510 crore. However, net profit for the quarter dipped 13.6% to ₹165 crore, impacted by expansion-related costs and rising input prices.
Expansion Drive: The company is ramping up capacity with three new greenfield plants to meet growing demand from marquee clients like Maruti Suzuki and Tata Motors. One plant has already commenced production, with two more on track.
Market Momentum: The stock surged 1.3% to ₹59.75, hitting a three-month high, reflecting strong investor optimism despite recent profit pressures.
This bonus issue underscores Motherson Sumi Wiring India’s commitment to value creation and positions the company for continued growth in the competitive auto components sector.
Sources: Moneycontrol, ET Money, Samco, Angel One
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