In a significant msumi bonus news update, Samvardhana Motherson Ltd.’s board has approved a 1:2 bonus issue of equity shares, pending shareholder approval at the upcoming general meeting.
Additionally, the board has recommended a final dividend of ₹0.35 per equity share (face value of ₹1) on the company’s total equity share capital, which comprises 703.63 crore shares.
The bonus issue comes as a symbolic gesture to commemorate the company’s founding in 1975. In an exchange filing, the board said the issuance reflects both the milestone and the company’s solid financial performance in FY25. The bonus shares will carry the same rights as existing shares and the record date for eligibility will be announced later.
Msumi, known for its frequent bonus issuance history, holds the distinction of being the non-Nifty company with the most bonus share issuances all in the 1:2 ratio.
The board also recommended a final dividend of ₹0.35 per share, in addition to the interim dividend of ₹0.50 paid earlier.
The final dividend is subject to shareholder approval during the Annual General Meeting (AGM) scheduled for August 28, 2025, and will be distributed by September 26, 2025. The record date for determining eligible shareholders is June 23, 2025.
Following the bonus announcement, the company also confirmed it would proportionally adjust the terms of its ₹1,500 crore Compulsorily Convertible Debentures (CCDs) issued via Qualified Institutions Placement (QIP) in September 2024. This adjustment aligns with SEBI regulations and ensures equity shares issued upon conversion are in sync with the new capital structure.
In terms of financial performance, the company reported a 22.75% decline in consolidated net profit for Q4 FY25, with profit falling to ₹1,115 crore compared to ₹1,444 crore in the same quarter last year.
However, revenue from operations witnessed an 8.34% year-on-year growth, rising to ₹29,317 crore from ₹27,058 crore in Q4 FY24. This indicates a steady expansion in business operations despite margin pressures impacting net earnings.
Samvardhana Motherson shares opened at ₹155 and touched an intraday high of ₹158.66 before slightly paring gains to trade at ₹153.97, up 1.24% at 11:45 AM on the NSE from the previous close of ₹152.09.
The volume-weighted average price (VWAP) stood at ₹156.13, indicating active trading interest. The upward movement comes on the heels of the company's proposed 1:2 bonus share issue and final dividend declaration, which have kept Msumi in investor focus.
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Samvardhana Motherson’s 1:2 bonus issue and dividend proposal underscore its confidence in long-term growth and commitment to shareholder value.
While the Q4 profit showed a dip, the strong revenue growth and strategic initiatives, including CCD adjustment,s signal the company’s proactive financial and corporate governance. Investors will be closely watching the AGM and record dates in the coming months.
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: May 30, 2025, 11:45 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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