Motherson Sumi, Samvardhana Motherson International shares go ex-bonus on record date today

Synopsis

Samvardhana Motherson International and Motherson Sumi Wiring India shares begin trading ex-bonus today, following their announcements of a 1:2 bonus issue. July 17 was the last day to buy shares to qualify. This marks the tenth and second bonus issuance for Samvardhana Motherson and Motherson Sumi Wiring respectively, since November 2000 and November 2022.

Shares of Samvardhana Motherson International Ltd (SAMIL) and Motherson Sumi Wiring India will commence trading on an ex-bonus basis from today. Both companies had earlier announced July 18 as the record date for determining shareholder eligibility for the ongoing bonus issue.

As a result, July 17 was the last day to purchase shares to qualify for the bonus shares.

Samvardhana Motherson International has announced a 1:2 bonus issue, meaning shareholders will receive one bonus share for every two shares held as of the record date. For example, if a shareholder owns 200 shares, they will be allotted 100 additional shares.

This marks the 10th bonus issuance by the company since November 2000, according to data from Trendlyne.

Similarly, Motherson Sumi Wiring has also declared a 1:2 bonus issue for its shareholders. This means one bonus share will be issued for every two shares held as of the record date. For instance, an investor holding 100 shares will receive 50 additional shares post-issuance, increasing their total holding to 150 shares.

This is the second bonus issue by the company since November 2022, according to Trendlyne data.

With the shares now trading ex-bonus, investors purchasing shares from today onward will not be eligible for the current bonus allotment.

A bonus issue refers to the free allotment of additional shares by a company to its existing shareholders, based on their current shareholding. It is typically done using the company’s accumulated earnings or reserves and serves to enhance liquidity without diluting shareholders' proportional ownership.

Meanwhile, the record date is the cut-off date set by the company to identify eligible shareholders who are entitled to receive the bonus shares. To be eligible, investors must own shares before the ex-date, which is typically set one trading day prior to the record date.

Once shares start trading ex-bonus, new buyers of the stock are not entitled to the upcoming bonus shares. After the ex-date, the share price is adjusted downward in proportion to the bonus ratio to reflect the increased share count, though the overall investment value remains unchanged.

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