Motherson has 2.08M shares traded in block

Motherson has 2.08M shares traded in block

Motherson Group, comprising Samvardhana Motherson International (SAMIL) and Motherson Sumi Wiring, has announced a significant bonus share issue, with a 1:2 ratio, set to take effect from July 18, 2025. This move, aimed at rewarding shareholders, has sparked interest among investors due to the potential impact on share prices and overall value.

Bonus Share Issue Details

Both companies have announced a 1:2 bonus share issue, meaning for every two shares held, shareholders will receive one additional share. This is the first bonus issue for Motherson Sumi Wiring since its demerger from Samvardhana Motherson in 2022 [2]. The record date for determining shareholder eligibility is July 18, 2025, and the last day to buy shares for bonus eligibility is July 17, 2025 [2].

Impact on Share Prices

The bonus share issue has led to a technical adjustment in share prices. On July 18, 2025, Samvardhana Motherson International shares opened at Rs 104.65, a 32% decline from the previous close of Rs 153.85, reflecting the bonus adjustment [1]. Similarly, Motherson Sumi Wiring shares opened at Rs 43.70, a 32% decline from the previous close of Rs 64.40 [1].

Despite the significant drop in share prices, investors should note that the overall value of their holdings remains unchanged. The number of shares increases proportionately to offset the reduced price per share. For example, a shareholder holding 300 shares of Motherson Sumi Wiring at Rs 60 apiece, a total value of Rs 18,000, will now hold 450 shares priced at approximately Rs 40 each, maintaining the same overall investment value [1].

Bonus Share Allotment

Both companies have announced that the deemed date of allotment for the bonus shares will be Monday, July 21, 2025, and these bonus shares will be made available for trading on the next working day, i.e., Tuesday, July 22, 2025 [1].

Conclusion

The bonus share issue by Motherson Group is a strategic move aimed at rewarding shareholders and potentially boosting liquidity. While the share prices have adjusted technically, the overall value of shareholder holdings remains unchanged. Investors are advised to monitor the developments closely and understand the impact on their portfolios.

References

[1] https://m.economictimes.com/markets/stocks/news/explained-motherson-sumi-samvardhana-motherson-didnt-crash-32-bonus-issue-explains-sharp-price-drop/articleshow/122753685.cms
[2] https://economictimes.indiatimes.com/markets/stocks/news/2-motherson-group-companies-approach-ex-date-for-12-bonus-share-issue-do-you-own/articleshow/122606450.cms