1:2 Bonus Issue Alert By Samvardhana Motherson! Record Date Confirmed; What Traders Should Do Now?

Originally known as Motherson Sumi Systems Limited, Samvardhana Motherson International Limited is a Tier-1 worldwide supplier of automobile components to original equipment manufacturers (OEMs). Since the Board of Directors announced the record date for 1:2 bonus shares, traders are paying more attention to the stock right now. This is because growing volumes close to the breakout zone suggest that bullish momentum is developing.

Samvardhana Motherson International Bonus Shares

"This is with reference to our letter dated May 29, 2025 in respect of a recommendation made by the Board of Directors of the Company for issue of bonus shares to the shareholders in the ratio of 1 (one) bonus equity share against 2 (two) existing equity shares, subject to the approval of the shareholders. Kindly note that the shareholders of the Company have approved aforesaid issue of bonus shares by passing an Ordinary Resolution by means of Postal Ballot, results of which have been declared by the Company today i.e. July 7, 2025. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed July 18, 2025 as 'Record Date', for the purpose of ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the Company. Further, in accordance with SEBI circular no. CIR/CFD/PoD/2024/122 dated September 16, 2024, the deemed date of allotment of Bonus Shares shall be Monday, July 21, 2025, and these Bonus Shares will be made available for trading on the next working day of allotment i.e. Tuesday, July 22, 2025," said Samvardhana Motherson International in a stock exchange filing.

Samvardhana Motherson International Share Price Target

"MOTHERSON is currently trading at ₹153.45 and is trending sideways in the short term. However, on the weekly chart, the stock has formed a Cup and Handle pattern and is on the verge of a breakout. Rising volumes near the breakout zone indicate building bullish momentum. A decisive close above ₹162 could trigger a sharp rally, with potential targets of ₹182 and ₹200 in the short to medium term," commented Mandar Bhojane - Senior Equity Research Analyst at Choice Broking.

"Technically, the stock is trading above all key EMAs, which reflects overall strength across timeframes. The RSI stands at 53.4, indicating mild momentum but with room for upside as momentum builds. On the downside, immediate support is placed at ₹148.5, and any dip toward this level may be considered a buying opportunity. For risk management, a stop-loss at ₹144 is recommended. Overall, the setup looks promising for positional traders anticipating a breakout," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.