Minda Inds soars after board OKs bonus issue proposal

Minda Industries jumped 6.26% to Rs 887.40 after the company's board approved the issue of bonus shares to the shareholders of the company.

The company will issue one bonus equity share for every one existing equity share held by the shareholders as on the 'record date'.

Minda Industries had announced its earnings for the quarter and the year ended on 31 March 2022 after market hours yesterday.

The company reported 2.9% rise in consolidated net profit to Rs 144.37 crore on a 7.9% increase in net sales to Rs 2,415.08 crore in Q4 FY22 over Q4 FY21.

Profit before tax in Q4 FY22 stood at Rs 174.96 crore, down by 7.9% from Rs 189.96 crore in Q4 FY21.

Minda Industries recorded 72.2% increase in consolidated net profit to Rs 355.80 crore on a 30.4% rise in net sales to Rs 8,313 crore in FY22 over FY21.

The board of Minda Industries has approved a final dividend of Rs 1 per equity share for the year ended on 31 March 2022.

An interim dividend of Rs 0.50 per share was paid to the equity shareholders during the quarter ended on 31 March 2022. Therefore, the total dividend for the financial year ended on 31 March 2022 aggregates to Rs 1.50 per equity share.

The board has fixed 10 June 2022 as the record date for the purpose of dividend payment and issue of bonus shares.

The company's board considered the proposal for fund raising up to Rs 1,000 crore via issue of debt securities, in one or more tranches, on private placement basis. The board has given its approval to seek shareholders' approval for the issue the said debt securities.

The Ministry of Corporate Affairs, Office of the Registrar of Companies, Central Registration Centre, Government of India, vide Its letter dated 19 May 2022, has issued name reservation certificate stating that there is no objection in the availability of the changed name UNO Minda from the existing name Minda Industries.

The board is of the opinion that the company's entire sales are under the trade mark "UNO Minda" and the company is largely known, well established and reputed as "UNO Minda" in auto components industries across the globe.

Accordingly, the board has approved the change of the name of the company from "Minda Industries " to "UNO Minda", subject to shareholders, all necessary and regulatory and statutory approvals.

The company's board has approved a proposal to invest in the equity shares of Tokai Rika Minda India under right issue, aggregating to Rs 25 crore.

Tokai Rika Minda is a joint venture between Tokai Rika Co., Japan (TRJ) and Minda Industries (MIL), in which TRJ holds 70% equity shares and MIL holds 30% equity shares of the said company.

The JV firm is engaged in the manufacturing of safety and security systems, electronic components and automotive switches.

Minda Industries is a flagship company of UNO MINDA Group, which manufactures automobile components for original equipment manufacturers (OEMs).

Powered by Capital Market - Live News