Ashok Leyland to consider first bonus share issue in 14 years

Ashok Leyland's shares rose 3.41% to Rs 249.65 after the update, moving above several moving averages.

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Business Today Desk

Updated May 20, 2025 2:31 PM IST

Ashok Leyland to consider first bonus share issue in 14 years

Ashok Leyland shares trade higher than 5 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

SUMMARY

Board meeting set for May 23 to review bonus share proposal
Share price rose 3.41% to Rs 249.65 after announcement
Market cap valued at Rs 71,063 crore with steady gains

The board of medium and heavy commercial vehicle manufacturer Ashok Leyland will discuss the proposal of a bonus share issue during its upcoming board meeting on Friday, May 23. This proposal will be evaluated alongside the company’s fourth quarter results, according to an exchange filing made on Monday, May 19.

Reacting to the update, shares of Ashok Leyland rose 3.41% to Rs 249.65 on Tuesday. Market cap of the firm stood at Rs 71,063 crore. The stock has risen 10.61% in the last one month.

Ashok Leyland shares trade higher than 5 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

Ashok Leyland stock has risen 15.21% in one year and gained 9% since the beginning of this year.

"We wish to inform you that, at the meeting dated 23rd May 2025, the Board of Directors may consider the proposal for issue of Bonus shares, subject to requisite approvals as required," said Ashok Leyland.

Approval from Ashok Leyland’s shareholders will be necessary for this bonus issue to proceed.

Notably, if approved, this would mark the first bonus issue in nearly 14 years for Ashok Leyland. The record date for the bonus shares has yet to be determined.

The last instance of Ashok Leyland issuing bonus shares occurred in 2011, when shareholders received one free share for every share held. Since then, the company has paid dividends that have ranged from Rs 0.45 to Rs 4.95 per share, the latter issued in April 2024.

As of the end of the March quarter, Ashok Leyland had approximately 14.18 lakh shareholders, representing a 9.38% stake in the company. Small shareholders are defined as those with a maximum authorized share capital of up to Rs 2 lakh.

Furthermore, domestic mutual funds held a 7.29% stake in Ashok Leyland at the end of the March quarter, while insurance companies accounted for a 6.26% stake.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Published on: May 20, 2025 2:31 PM IST

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Ashok Leyland to consider first bonus share issue in 14 years

Ashok Leyland's shares rose 3.41% to Rs 249.65 after the update, moving above several moving averages.

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