Small-cap stocks owned by Maruti Suzuki will soon consider bonus shares. Details here

Small-cap stocks Bharat Seats has announced that its board will meet next week on Tuesday 5 November to consider bonus issue of shares together with the financial results of the company.

On Tuesday, October 28, the company, which operates in the Indian segment of auto components and equipment, announced: “…a meeting of the Board of Directors of the Company is scheduled for Tuesday, November 5, 2024 also … to consider the issue of issuing bonus shares to the members of the company.”

The company last announced the release of bonuses in 2007, so this was the first such corporate action in 17 years.

Stock price action

Seat of Bharat on Wednesday, October 30, the share price rose for the third day. Shares jumped 10.41 percent to ₹194 today. Shares rose 7 percent on Tuesday ₹175.70.

The stock is up 52.6 percent over the past year, while it’s up 20 percent over the past six months. However, the stock has fallen 5 percent over the past month due to general market weakness.

Shares hit a 52-week high ₹240 on BSE on August 29, 2024, hitting a 52-week low ₹125.65 on March 3, 2024.

Maruti is classified as a promoter

Under the company’s shared ownership scheme, Maruti SuzukiIndia’s largest carmaker is classified as one of the promoters. As of the end of the September quarter, Maruti Suzuki held a 14.81% stake or 46,50,000 shares in Bharat Seats.

Bharat Seats manufactures seat systems, carpets, NVH components and body seals for four-wheelers and two-wheelers. The company also provides seating system for Indian Railways. It has five production facilities across the country.