On Tuesday, Bharat Gears Ltd shares rose more than 6 per cent to Rs 148 to deals as the auto ancillary stock started trading ex-bonus. The company has announced that bonus shares in the ratio of 1:2 mean one bonus share on the existing two equity shares to eligible shareholders. A total of 51,18,35 equity shares having a face value of Rs 10 each are proposed to be issued under the bonus shares.
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On September 28, the company fixed the record date to determine eligible shareholders for the bonus issue and pay the bonus shares within two months from the date of approval by the board of directors in a board meeting on August 24, 2022.
“We wish to inform you that the members of the Company, in their Annual General Meeting held on Tuesday, September 20, 2022, inter alia, considered and approved the issue of Bonus Shares to the members of the Company by way of capitalization of reserves in the ratio of 1:2, i.e. issue of one equity share for every two equity shares held by the members whose names appear in the Register of Members or as the beneficial owner(s) of the Equity Shares of the Company, in the records of the Depositories, on the close of business on the Record Date being September 28, 2022,” the company’s statement.
Over Rs 5.1 crore of the free reserve was used for bonus shares. As on March 31 2022, more than Rs 5.8 crore is used for free reserve. After the bonus issue, the company’s share capital has to be more than Rs 15.35 crore compared with the current share capital of Rs 10.2 crore. Additionally, the bonus shares are fully paid up to existing shareholders. The company is a global supplier of automotive gear and heat treatment furnaces. The company manufactures a wide range of Transmission Gears and Shafts, Gear Boxes, Ring Gears and Pinions, and Differential Gears, majorly for the automotive industry.
