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TVS Motor plans stock split, bonus issue this year
Chennai, Sept 13: Two-wheeler major, TVS Motor (TVS-M) is likely to take a decision on issuing a bonus issue or consider a stock split this year. The company, however, ruled out payment of higher dividend, to shareholders, despite higher reserves citing the need for investing in new products.
Chennai, Sept 13: Two-wheeler major, TVS Motor (TVS-M) is likely to take a decision on issuing a bonus issue or consider a stock split this year. The company, however, ruled out payment of higher dividend, to shareholders, despite higher reserves citing the need for investing in new products.
Replying to shareholders queries at the company’s 11th AGM here on Friday, Venu Srinivasan, chairman and director, TVS-M said the returns in the form of dividends comprise a small percentage in the capital market.
“On the other, the company’s share price, which was around Rs 80 when Suzuki parted ways, is now quoting over Rs 800. There has been a significant value addition through share price appreciation,” Mr Srinivasan said.
The company has been on an average maintaining 30% dividend pay out year after year. “Even though the company’s reserves are healthy (at Rs 400 crore), we need to invest Rs 100 crore and it may even go up to Rs 200 crore as we enter the three-wheeler segment,” he added.
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“On the other, the company’s share price, which was around Rs 80 when Suzuki parted ways, is now quoting over Rs 800. There has been a significant value addition through share price appreciation,” Mr Srinivasan said.
The company has been on an average maintaining 30% dividend pay out year after year. “Even though the company’s reserves are healthy (at Rs 400 crore), we need to invest Rs 100 crore and it may even go up to Rs 200 crore as we enter the three-wheeler segment,” he added.
Bureau Report