The company had announced the issue of one bonus share for every one share held by the shareholders, as on the record date, which is today.
This means that the shares that were in the demat account of shareholders as of closing on Tuesday, will be issued bonus shares in equal proportion.
For example, if a shareholder had 20 shares of Ashok Leyland, worth ₹4,000, they will now turn into 40 shares (adjusted for 1:1), but the value will remain the same as the underlying price will halve, adjusting for the bonus ratio.
At the end of the March quarter, Ashok Leyland had close to 14.2 lakh small retail shareholders, or those with an underlying share capital of up to ₹2 lakh. These shareholders held a 9.38% stake in the company as of March 31, 2025.
This was the first bonus issue announced by Ashok Leyland after nearly a decade-and-a-half. The last instance of the company announcing a bonus issue of shares was back in 2011.
Shares of Ashok Leyland are trading 1.2% lower on Tuesday at ₹123.95. The stock had gained 6.5% in the last one month as of Tuesday’s close, taking their year-to-date advance to 12.6%.
First Published: Jul 16, 2025 7:57 AM IS