Bonus Issue, Stock Split Of Nov 2022: Large Cap, Small Cap Stocks Make Announcement

2 Companies are ready with bonus issue and stock split. These companies are Motherson Sumi Wiring and Vishnu Chemicals Ltd. Motherson Sumi Wiring has fixed record date for bonus issue and Vishnu Chemicals is planning to conduct stock split and record date will be fixed soon.

What is stock split?
When a company announces stock split, it leads to increased number of shares of that company with the market cap remaining same. The current shares split with the underlying value remaining similar. When the number of shares rise, the price per share declines. The companies go for stock split to make the share more affordable for investors who may find it difficult to buy the shares of that company due to high prices.

What is bonus share?
These are additional shares given to the existing shareholders without any extra cost, on the basis of the number of shares that a shareholder holds. Bonus shares are company's accumulated earnings which are not given out in the form of dividends, but are converted into bonus shares of free shares.

Check key takeaways below:

1. Motherson Sumi Wiring Fixes Record Date For 2:5 Bonus Issue

The board of directors of the large cap company stated in the regulatory filing, "Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, November 17, 2022 as 'Record Date for the purpose ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the Company."
Shareholders will get 2 bonus shares for every 5 shares held.

Earlier The board of director of Motherson Sumi stated in regulatory filing, "In furtherance to our letter dated September 27, 2022, please note that the Board of Directors of the company in its meeting held today i.e September 30, 2022 has subject to the approval of the Shareholders of the company: (1) Approved increase in Authorised Share Capital of the company from INR 333,00,00,000 to INR 900,00,00,000 and (2) Recommended issue of Bonus shares in the ratio of 2 (Two) bonus (fully paid up) Equity Shares against 5 (Five) Equity Shares of Re. 1/- each held in the company.

Stock Outlook, Return, and Market Capitalisation: The last trading price of the stock is Rs 81 apiece with market capitalisation at Rs 25,595 crore. The stock has given a maximum return of 30% in last 1 year.
Motherson Sumi Wiring India Limited is a leading and fast-growing full-system solutions provider to OEMs, in the wiring harness segment in India.

2. Vishnu Chemicals Ltd Approves 5:1 Stock Split

The company informed BSE on October 31, 2022, "Approved the Sub-Division/ Split of 1 (One) Equity Share of face value of Rs. 10/- (Rupees Ten Only) fully paid up into 5 (Five) Equity Shares of Rs. 2/- (Rupees Two Only) each fully paid up, subject to the approval of the Members of the Company and regulatory/statutory approvals as maybe required. The record date for the sub-division of equity shares shall be decided by the Board and will be intimated to the exchanges."

Vishnu Chemicals Ltd Stock Outlook, Return, and Market capitalisation: The current market price of Vishnu Chemicals is Rs 1763 apiece with market capitalisation at Rs 2106 crore. The stock has given a maximum return of 1254% in the last 3 years.

As a pure play chemical manufacturer, the company has today consolidated its position as a dependable supplier for global companies across steel, glass, pharmaceutical, pigments and dyes, leather and allied industries. The small cap company operates in Chemicals sector.

Disclaimer

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