 "Maruti Suzuki-backed Bharat Seats to issue bonus shares for shareholders")
Bharat Seats Ltd, a company backed by Maruti Suzuki India Ltd, the largest passenger car manufacturer in India, announced that it will issue bonus shares to its shareholders, according to a report by CNBC-TV18.
Shareholders will receive one bonus share for each share they own as of the record date, which has yet to be established by the board. This issuance is contingent on obtaining approval from shareholders and relevant regulatory bodies.
This marks the first bonus share issuance from Bharat Seats in over 17 years, with the last occurrence in 2007, when it offered one bonus share for each existing share, the report said.
On the financial front, Bharat Seats announced its results for the September quarter, reporting a net profit of Rs 7 crore, which remained unchanged Year-on-Year. Revenue rose by 1.7 per cent compared to the same period last year, reaching Rs 291 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased by 4.7 per cent year-over-year to Rs 17.8 crore, while the profit margin held steady at 6 per cent.
According to the company’s shareholding pattern for the quarter ending in September, Maruti Suzuki India is classified as a promoter with a 14.81 per cent ownership stake, alongside Suzuki Motor Corporation, which holds a comparable stake. NDR Auto Components, another publicly listed entity, is also recognised as a promoter of Bharat Seats, with a 28.66 per cent shareholding as of the end of September.
Bharat Seats specialises in manufacturing seating systems, NVH components, and body sealing parts for both four-wheelers and two-wheelers, as well as seating systems for Indian Railways.
Following the announcement of the bonus shares, Bharat Seats’ stock price increased, reaching a high of Rs 212, reflecting a 2.9 per cent rise for the day. The stock is up 30 per cent since the beginning of 2024.