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Published: September 27, 2024
Updated: September 27, 2024

NDR Auto Components Announces Bonus Issue Amidst Remarkable Growth: Here's What You Need to Know

Introduction: NDR Auto Components' Impressive Performance

NDR Auto Components, a multibagger stock in the auto ancillary sector, has achieved significant returns for its investors in 2024. With a year-to-date (YTD) return of 110%, the company continues to shine in the small-cap space. Over the past two years, it has seen a remarkable surge of 696% in stock value, reflecting its strong market performance.

Bonus Issue Announcement and Record Date

In a move that has caught investors' attention, NDR Auto Components has received approval from the National Stock Exchange of India Limited (NSE) to list 11,892,652 bonus equity shares. The company has recommended a bonus issue in a 1:1 ratio, meaning shareholders will receive one bonus share for every one equity share they own. The record date for this bonus issue was set for September 25, 2024, allowing eligible shareholders to benefit from the distribution.

Impact of the Bonus Issue on Shareholders

Although the number of shares held by investors will increase after the bonus issue, the overall investment value will remain the same. This is because the stock price adjusts in line with the increase in the number of shares, resulting in a slight correction. However, the bonus shares themselves will not be taxed, unlike dividends. Investors will only need to pay short-term or long-term capital gains tax if they decide to sell these additional shares, depending on the holding period.

Stock Performance and Dividend History

NDR Auto Components has consistently rewarded its shareholders. Apart from the impressive stock growth, the company recommended a final dividend of ₹3.75 per share for the financial year 2023-24. Earlier, in 2023, it had announced a similar 1:1 bonus issue, reflecting its commitment to rewarding investors. The company has steadily increased its payouts, with previous dividends including ₹5 per share in 2023.

About NDR Auto Components

NDR Auto Components is known for manufacturing complete seating systems catering to various segments, including four-wheelers, two-wheelers, and surface transport. As of October 2024, the company boasts a market capitalization of ₹2,128 crore, underscoring its growing presence in the auto ancillary industry.

Continued Growth Potential

With a solid history of delivering returns and consistent shareholder rewards through bonus issues and dividends, NDR Auto Components remains a strong contender in the market.