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Motherson Share Price in Focus on Jul 22 After Bonus Issue Allotment

Written by: Neha DubeyUpdated on: 22 Jul 2025, 3:46 pm IST
Samvardhana Motherson International completed the allotment of bonus shares in a 1:2 ratio, increasing its paid-up capital significantly.
Motherson Share Price in Focus on Jul 22 After Bonus Issue Allotment
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Samvardhana Motherson International Ltd (NSE: MOTHERSON) has allotted 351.81 crore bonus equity shares in a 1:2 ratio, as approved by shareholders via postal ballot. Following the allotment, the company’s paid-up share capital rose from ₹703.63 crore to ₹1,055.44 crore, with each new bonus share carrying a face value of ₹1 and enjoying the same rights as existing equity shares.

Samvardhana Motherson Share Price Movement 

As of July 22, 2025, Motherson share price opened at ₹101.10, compared to the previous close of ₹100.80, and moved between ₹100.20 and ₹101.20 during early trade. The volume-weighted average price (VWAP) was ₹100.64, indicating stable intraday sentiment.

The scrip remains well below its 52-week high of ₹144.74, though it has recovered from the 52-week low of ₹71.57. No price band restrictions are currently active, but notional upper and lower limits are ₹110.85 and ₹90.75, respectively.

From a valuation perspective, Motherson trades at a PE ratio of 44.75 and a PB ratio of 1.90, reflecting optimistic investor sentiment. The company reported a trailing twelve-month EPS of ₹2.24, with a cash EPS of ₹2.75. The Return on Equity (ROE) stands at 4.26%, suggesting potential for efficiency gains.

Motherson holds a solid market position with a full market capitalization of ₹1,05,962.94 crore and a free-float market cap of ₹44,279.58 crore, securing its place in the BSE 100 index within the Auto Components & Equipment sector.

How to Check If Bonus Shares Are Credited

Investors who held Motherson shares on the record date should receive bonus shares automatically in their demat accounts. To verify credit, shareholders can log in to their demat account through NSDL/CDSL or through brokers. Navigate to the holdings section and check for Motherson shares.

Impact on Convertible Debentures

Motherson also revised the floor price for equity shares convertible from its earlier issued 6.50% Compulsorily Convertible Debentures (CCDs). Originally priced at ₹190 (pre-bonus), the new post-bonus adjusted floor price stands at ₹126.67, in accordance with SEBI regulations and capital structuring norms.

Read More: Corporate Actions in Focus: Hero MotoCorp to 3M India: Dividend & Bonus Updates This Week (July 21).

Conclusion

The bonus share allotment enhances Motherson’s liquidity and signals the company’s long-term capital confidence. Market participants will closely monitor the company’s future strategies, operational performance, and capital deployment for further cues.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 22, 2025, 10:13 AM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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