Samvardhana Motherson Bonus Issue: Last Day to Buy Shares to Eligible for Bonus Shares

Earlier, Samvardhana Motherson had fixed July 18, 2025, as the record date for its 1:2 bonus issue. On May 29, 2025, the board of Samvardhana Motherson declared a bonus issue on the 50th Anniversary of the Motherson Group.

Bonus shares are issued by companies to existing shareholders without any additional cost, as a way to distribute accumulated earnings.

Samvardhana Motherson said in an exchange filing, “The board approved bonus shares in the ratio of 1:2, i.e., 1 equity share of Re. 1/- each as a bonus share fully paid-up, for every 2 existing equity shares of Re. 1/- each, subject to the approval of shareholders through Postal Ballot. The bonus shares shall rank pari-passu in all respects and carry the same rights as existing equity shares of the Company.

What Does Samvardhana Motherson Bonus Issue Record Date Mean for Shareholders?

As Samvardhana Motherson has set July 18 as the record date for the bonus issue, meaning that July 17 marks the last day to buy Samvardhana Motherson shares to become eligible for the bonus issue. Further, any shares bought on or after July 18 (record date) won't be eligible for the bonus issue due to the T+1 settlement rule.

How Many Bonus Shares Will You Get With 500 Shares?

To calculate the bonus shares:

Given:

Bonus Ratio = 1:2 (This means 1 bonus share is given for every 2 shares held)

Current Shareholding = 500 shares

Based on the bonus ratio of 1:2, an investor holding 500 shares will receive 1 bonus share for every 2 shares held. This results in a total of 250 bonus shares being allotted. In this case, the investor's total shareholding will increase from 500 to 750 shares after the bonus issue, enhancing the number of shares owned while keeping the overall investment value unchanged in the short term.

Samvardhana Motherson Management Take on Q4FY25 Highlights

Commenting on the results, Mr. Vivek Chaand Sehgal, Chairman, Motherson, said, “Our performance demonstrates the resilience and adaptability of our business. Leveraging our strong engineering and manufacturing expertise, we are well-equipped to meet our customers' needs, positioning us for long-term sustainable growth. Our booked business value of USD 88+ billion, which also encompasses non-automotive businesses, sets a strong foundation for a bright future. The Board congratulated the Motherson Team for an exceptional performance over the five-year period despite numerous challenges in a volatile world.

The Company managed to achieve the highest ever sales outpacing the automotive industry by building several new facilities, integrating record number of acquisitions (23), entering new industries successfully, all while exceeding customer expectations on quality (receiving multiple awards globally); yet retaining focus on free cash flow and bringing the leverage ratio to the lowest level in the five year period.

Also Read: Motherson Sumi Wiring to Issue 1:2 Bonus Shares; Last Date to Buy Shares is Today, July 17

As we commemorate the 50th anniversary of Motherson, we are grateful for the trust and confidence our customers and shareholders have placed in us; we also express our sincere appreciation to our over 200,000 strong Motherson family members for their efforts, dedication and exceptional hard work.”

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.