Bharat Seats Ltd, a company promoted by Maruti Suzuki India Ltd., announced a 1:1 bonus share issuance for its shareholders, marking the first bonus distribution in over 17 years. The record date is pending board determination, and the bonus remains subject to shareholder and regulatory approvals.
With Maruti Suzuki and Suzuki Motor Corporation each holding a 14.81% stake in Bharat Seats, the announcement has brought attention to this auto-component manufacturer. Another listed entity, NDR Auto Components, holds a larger promoter stake at 28.66% as of the recent September quarter.
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Bharat Seats reported flat net profit at ₹7 crore for the September quarter. However, revenue showed slight growth, increasing by 1.7% to ₹291 crore compared to the previous year’s quarter. EBITDA for the quarter rose by 4.7% to ₹17.8 crore, maintaining stable margins at 6%.
This manufacturing company produces seating systems, NVH (noise, vibration, and harshness) components, and body sealing parts for automotive clients, including two- and four-wheeler sectors, as well as seating systems for Indian Railways, highlighting its diverse product portfolio.
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In market response to the bonus issue, Bharat Seats’ shares surged, reaching a 2.9% intraday high of ₹212, representing a robust 30% year-to-date gain in 2024. This strong stock performance reflects positive investor sentiment following the bonus announcement.
Bharat Seats continues to reinforce its role in India’s automotive sector, backed by prominent stakeholders like Maruti Suzuki and Suzuki Motor Corporation, while positioning itself for growth amid rising demand for automotive components and systems.