Bonus Alert: MM Forgings to Issue Free Shares for First Time in Six Years

Bonus Alert: MM Forgings to Issue Free Shares for First Time in Six Years

MM Forgings Ltd., a leading manufacturer of closed die hot forgings, is set to reward its shareholders with a bonus issue of shares for the first time in six years. The company’s board meeting, scheduled for Wednesday, May 29, will consider this bonus issue alongside the announcement of its March quarter results.

The last bonus issue by MM Forgings was in 2018, where shareholders received one free share for every share held. Prior to that, a similar 1:1 bonus was issued in 2008. This move marks a significant milestone for the company, highlighting its commitment to enhancing shareholder value.

In addition to the bonus issue, the board will also deliberate on a proposal to pay dividends to shareholders. The company has a strong track record in this regard, having paid ₹6 per share in both 2022 and 2023, the highest dividends it has distributed so far.

MM Forgings positions itself as a one-stop shop for closed die forgings, catering to both domestic and international markets. It stands as one of the largest exporters of forgings in India within its product range. The company currently operates ten plants with a total capacity of 1.1 lakh metric tonnes.

Despite a slight dip of 1% in its share price on Friday, MM Forgings has experienced substantial growth in 2024, with its stock gaining 15.5% year-to-date. Over the past 12 months, the stock has risen by 33%, and it has doubled in value over the last five years.

This upcoming bonus issue and potential dividend payment reflect MM Forgings’ robust financial health and its strategic focus on rewarding its investors. Shareholders and potential investors will be closely watching the outcomes of the May 29 board meeting for further developments.

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