Bharat Seats Announces 1:1 Bonus Share, Know the Record Date

Bharat Seats Limited (BSL), promoted by Mr Rohit Relan and his family, has a long-standing reputation in the Indian automotive sector. Following the restructuring of the Relan Group, the company’s shareholding is fully owned by Mr Rohit Relan and his family. BSL specialises in manufacturing car seats and moulded floor carpets for Maruti Suzuki India Limited (MSIL), as well as two-wheeler seats for Suzuki Motorcycle India Private Limited (SMIPL).

Manufacturing Facilities and Revenue Breakdown

The company operates five manufacturing facilities across Haryana (Gurgaon, Manesar, and Bhorakalan) and Gujarat (Surendra Nagar and Hansalpur). During the first nine months of FY24 (9MFY24), BSL generated approximately 84% of its revenue from car seat assembly, 5% from motorcycle seat production, and the remainder from other divisions like carpet sets, extrusion components, and frame components. All revenue is derived domestically.

Bonus Issue Approval 

On December 9, 2024, shareholders approved several strategic decisions through a postal ballot:

• Increase in Authorised Share Capital: The authorised share capital was raised from ₹7 crore to ₹15 crore, divided into 7.5 crore equity shares with a face value of ₹2 each.
• Bonus Issue Approval: Shareholders approved the issuance of 1 bonus share for every 1 equity share held as of the record date, December 20, 2024.

Details of the Bonus Issue

The bonus shares, derived from free reserves, reflect BSL’s robust financial position. Notable highlights include:

• Pre-Bonus Capital: ₹6.28 crore, comprising 3.14 crore equity shares.
• Post-Bonus Capital: ₹12.56 crore, comprising 6.28 crore equity shares.
• Free Reserves Utilisation: ₹6.28 crore will be utilised from the company’s free reserves of ₹160.55 crore (audited as of March 31, 2024).
• Dispatch of Bonus Shares: Scheduled by December 24, 2024.

Stock Performance

BSL’s stock price rose by 2.5% on December 9, 2024, following the bonus issue announcement as of 2:02 pm. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.