Motherson Sumi Wiring India bonus share announced - check ratio; counter jumps over 4%

Motherson Sumi bonus share: Motherson Sumi Wiring India Limited (NSE: MSUMI) on Friday announced that its Board of Directors has recommended the issuance of bonus shares in the ratio of 2:5. This means, an eligible shareholder will get two bonus shares on five existing shares. However, the company stated that this is subject to the shareholders' approval.

"Recommended issue of Bonus shares in the ratio of 2 (Two) bonus (fully paid up) Equity Shares against 5 (Five) Equity Shares of Re 1/- each held in the company," the company said in a regulatory filing. 

On a day when Motherson Sumi Wiring India's board met to consider the proposal for a bonus issue, the share of the company zoomed over 4% to Rs 110 apiece on NSE. 

Earlier on Tuesday, the company had said in a regulatory filing that a board meeting in this regard has been scheduled on Friday, September 30, 2022. 

"The company vide letter dated September 27, 2022 has informed that Board Meeting of the company is scheduled to be held on Friday, September 30, 2022 to consider the proposal for issuance of Bonus Shares to the Equity Shareholders of the company," 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 formally known as Motherson Sumi Systems. The company is a leading solutions provider to original equipment manufacturers (OEM) and has a market of around Rs 26,605 crore. 

It is important to mention that bonus shares are issued by a listed company. They are issued in a certain proportion only to already existing shareholders.