Ashok Leyland has declared its 1:1 bonus issue, with the record date set as July 16, 2025. According to the company’s exchange filing, shareholders who hold fully paid-up shares as of this date will be issued one bonus share for every held share.
This is just the second bonus issue in the company’s history, with the first having occurred in 2011, also in the 1:1 ratio. The bonus declaration follows a robust performance and announces management’s faith in Ashok Leyland’s long-term prospects.
Facts investors must know
Ashok Leyland’s board had given its nod for the bonus proposal in May this year. The company has now made it clear that:
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Date to record the bonus issue is Wednesday, 16th July 2025
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Bonus shares will be issued on Thursday, 17th July
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These bonus shares are open for trade from Friday, 18th July
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The company has a T+1 settlement cycle and hence, 16th July will also be treated as the ex-date, i.e., the date of cut-off for shareholders in order to qualify for bonus allocation.
What it implies for investors
A 1:1 bonus issue of shares actually doubles the shares outstanding and is generally viewed as a way to boost retail participation by reducing the market price of the stock proportionately, without affecting the overall market cap.
Ashok Leyland shares were observed trading steady on Wednesday, up at Rs 251.05 as of 2 PM. The company now has a market capitalisation of around Rs 73,721 crore and is a prominent constituent of the BSE 200 index.
Strategic rationale
While bonus shares don’t increase the value of an investor’s holding in the short run, they are an indication of the company’s solid reserves and growth prospects in the long run. In a high liquidity situation, they also enhance the appeal of the shares to fresh investors.
With good fundamentals, consistent growth of its core commercial vehicle business, and sustained investor interest, Ashok Leyland’s bonus issue may be a well-timed step to release long-term shareholder value.