At a meeting on Friday, the board of Motherson Sumi Wiring India (NSE 0.98%) recommended a 2:5 dividend. This means eligible investors will receive two additional shares of Motherson Sumi Wiring for every five shares they hold.

“The board of directors of the company, at today’s meeting, with the approval of the company’s shareholders, proposed a bonus of 2 shares. Relative to the five shares of Re 1 held by the company,” the company said in a filing to the exchange.

In addition, the company approved an increase in authorised share capital from Rs 333 crore to Rs 900 crore. Shares of the company fell about 1% to Rs 85.95 per share after the announcement. The stock has been up more than 22% in the past three months. ICICI Direct has issued a “buy” call on the stock with a target price of Rs 105.

With a market capitalisation of over Rs 27,000 crore, Motherson Sumi Wiring is a mid-sized auto parts company and a leading manufacturer of wiring harnesses.