On Wednesday, Auto parts company Bharat Gears Ltd (BGL) announced that its board of directors had recommended a bonus issue of 1 bonus share for every two existing equity shares.

“It is hereby notified that the board meeting of the company held on Wednesday, August 24, 2022, reviewed and approved the distribution of bonus shares to the company’s shareholders. 1:2 through the method of capitalising reserves that is, issue 1 (1 for every two shares) equity shares,” the company said in a regulatory filing. The decision was made at the company’s board meeting today and requires shareholder approval.

The company plans to complete the option exercise and issue bonus shares within two months from the date of approval by the board of directors on August 24, 2022.

The company’s pre-dividend paid-up share capital is 1.02 crore equity shares at Rs 10 each, for a total of Rs 10.23 crore. The paid-up share capital after the bonus issue is 1.53 crore shares at Rs 1 crore per share, for a total of Rs 15.35 crore.

BGL is a major global supplier of automotive gears and heat treatment furnaces. The company mainly produces ring and pinion gears, transmission gears and shafts, differentials and transmissions for the automotive industry.
The company has modern manufacturing plants in Mumbra near Mumbai, Faridabad near Delhi and Satara near Pune.