EV Stock Minda Industries Earns 3% After Bonus Issuance
Minda Industries Auto Auxiliary shares gained 3% today after the free shares were declared.
Yesterday the company said free shares in the ratio of 1:1.
While declaring a stellar set of results in May 2022, the company’s board had approved the free share issue.
The record date for the same was June 10, 2022. This means that shareholders who held shares on the record date would be entitled to receive the free shares.
The issue of free shares made it possible to increase the liquidity of the share.
Corporate actions events such as bonus issuances and Inventory breakdown often make significant changes to a business through changes in capital structure.
In case of bonuses, they may seem like a good thing, but they don’t actually give investors anything they didn’t already have.
In essence, it’s just a way of dividing the same company into a higher number of shares and distributing those additional shares on a pro rata basis to shareholders.
Note that the automotive industry has faced serious concerns such as semiconductor shortage, rising input costs, among other reasons.
Despite all of this, Minda Industries posted decent quarterly numbers and recorded growth.
A word about Minda Industries
Minda Industries, the flagship company of NK Minda Group, is one of the most diversified automotive component manufacturers in India.
It is a technology leader in the automotive components industry and a leading Tier 1 supplier of proprietary automotive solutions for OEMs.
Its market leadership is remarkable. The company is the largest switch player in India and the second largest in the horn segment in the world. It is also the third largest automotive lighting player in India.
From manufacturing plants to R&D centers, Minda Industries has extended its reach globally. It has approximately 71 manufacturing plants and 10 R&D centers around the world.
In addition to rewarding shareholders with free shares, the company had also declared a dividend.
For the financial year 2021-22, the company declared an interim dividend of Rs 0.5 per share while more recently it declared a final dividend of Rs 1 per share.
The record date for the final dividend is July 8, 2022.
Minda Industries is a stocks paying consistent dividends. Take a look at the table below which shows the company’s dividend history:
How Minda Industries Has Performed Recently
Minda Industries share price opened the day up 2.3% to Rs 507.9 from its previous close of Rs 496.
The company has a 52-week high quote of Rs 630 hit on December 29, 2021 while it has a 52-week low quote of Rs 315 hit on July 9 last year.
Over the past year, the company’s shares have gained 60%.
In 2022, Minda Industries stock price is down 17%.
Here’s an interesting thing about Minda Industries…
It’s one of the biggest wealth creators of the last decade. Minda Industries is one of the stocks that turned Rs 1 lakh to Rs 1 crore in 10 years.
While the company saw success between 2014 and 2018 when its share price soared, the real gains came after April 2020 when markets priced in the EV adoption factor.
Minda Industries is one of main stocks of electric vehicles in India which has formed JVs for its EV products.
Disclaimer: This article is provided for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)