Samvardhana Motherson International on Thursday said its board has proposed a 1:2 bonus share issue, recommended a final dividend of Rs 0.35 per share, and initiated adjustments for a past fundraise via convertible debentures — all while reporting its March quarter and full-year earnings.
Shares of the auto parts maker climbed as much as 3.4% to Rs 153.75 on the BSE following the slew of corporate decisions.
The board approved a proposal to issue one bonus share for every two shares held, subject to shareholder approval through postal ballot. The company said the move was a part of its golden jubilee celebrations and backed by strong financial performance in FY25.
“The Board of Directors of the Company in its meeting held today, i.e., May 29, 2025, have observed and decided to celebrate 50th Anniversary of Motherson Group Founded in year 1975… and also upon considering strong financials of the Company for financial year 2024-25, approved bonus shares in the ratio of 1:2,” the company said in a filing.
The bonus shares “shall rank pari-passu in all respects and carry the same rights as existing equity shares.” The record date for eligibility will be fixed and communicated later.
The company holds the distinction of being the non-Nifty firm with the highest number of bonus issues, all of which have been in the same 1:2 ratio.
CCD adjustment for QIP
In line with the proposed bonus, the company said it would adjust the terms of its Rs 1,500 crore fundraise via compulsorily convertible debentures (CCDs) issued on September 20, 2024, under a Qualified Institutions Placement.
“Therefore, pursuant to terms of issuance of CCDs, the number of Equity Shares issuable upon conversion of the CCDs shall… be proportionately adjusted,” the company said, adding that the move complies with SEBI regulations and applicable laws.
Dividend record date announced
The board also recommended a final dividend of Rs 0.35 per share for FY25, in addition to the Rs 0.50 interim dividend paid earlier in the year. Subject to shareholder approval at the AGM on August 28, 2025, the dividend will be paid by September 26, 2025.
The record date for determining eligible shareholders has been set as June 23, 2025.
“The final dividend, if declared, by the Shareholders at forthcoming AGM shall be paid within 30 days from date of declaration, i.e., on or before September 26, 2025,” the company said.
Earnings Snapshot
Samvardhana Motherson International on Thursday reported a 22.75% year-on-year decline in consolidated profit after tax for the March quarter, which fell to Rs 1,115.38 crore from Rs 1,444 crore in the same period last year.
The company’s revenue from operations rose 8.34% year-on-year to Rs 29,316.83 crore, compared to Rs 27,058.22 crore in the corresponding quarter of FY24.
Also read | Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Shares of the auto parts maker climbed as much as 3.4% to Rs 153.75 on the BSE following the slew of corporate decisions.
The board approved a proposal to issue one bonus share for every two shares held, subject to shareholder approval through postal ballot. The company said the move was a part of its golden jubilee celebrations and backed by strong financial performance in FY25.
“The Board of Directors of the Company in its meeting held today, i.e., May 29, 2025, have observed and decided to celebrate 50th Anniversary of Motherson Group Founded in year 1975… and also upon considering strong financials of the Company for financial year 2024-25, approved bonus shares in the ratio of 1:2,” the company said in a filing.
The bonus shares “shall rank pari-passu in all respects and carry the same rights as existing equity shares.” The record date for eligibility will be fixed and communicated later.
The company holds the distinction of being the non-Nifty firm with the highest number of bonus issues, all of which have been in the same 1:2 ratio.
CCD adjustment for QIP
In line with the proposed bonus, the company said it would adjust the terms of its Rs 1,500 crore fundraise via compulsorily convertible debentures (CCDs) issued on September 20, 2024, under a Qualified Institutions Placement.
“Therefore, pursuant to terms of issuance of CCDs, the number of Equity Shares issuable upon conversion of the CCDs shall… be proportionately adjusted,” the company said, adding that the move complies with SEBI regulations and applicable laws.
Dividend record date announced
The board also recommended a final dividend of Rs 0.35 per share for FY25, in addition to the Rs 0.50 interim dividend paid earlier in the year. Subject to shareholder approval at the AGM on August 28, 2025, the dividend will be paid by September 26, 2025.
The record date for determining eligible shareholders has been set as June 23, 2025.
“The final dividend, if declared, by the Shareholders at forthcoming AGM shall be paid within 30 days from date of declaration, i.e., on or before September 26, 2025,” the company said.
Earnings Snapshot
Samvardhana Motherson International on Thursday reported a 22.75% year-on-year decline in consolidated profit after tax for the March quarter, which fell to Rs 1,115.38 crore from Rs 1,444 crore in the same period last year.
The company’s revenue from operations rose 8.34% year-on-year to Rs 29,316.83 crore, compared to Rs 27,058.22 crore in the corresponding quarter of FY24.
Also read | Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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