Shares of Ashok Leyland Ltd slipped nearly 2% on Wednesday, July 16, trading at ₹122.95 at 9:51 AM on NSE — down ₹2.50 from the previous close of ₹125.45 — as the stock began trading ex-bonus following the company’s bonus share issue announcement.
The stock traded in a range of ₹122.80–₹125.90 during the session, with a market capitalization of around ₹361.05 billion. The stock carries a P/E ratio of 11.65 and a dividend yield of 5.08%, with an average daily volume of about 5.23 million shares.
Why did the stock price adjust?
Ashok Leyland had announced a 1:1 bonus issue, meaning shareholders will receive one bonus share for each share held as of the record date, which is today. The bonus shares are issued free of cost and double the number of shares held, while the stock price adjusts proportionally, keeping the overall value unchanged.
For instance, if a shareholder owned 20 shares worth ₹4,000 yesterday, they will now have 40 shares after the bonus issue, with the total value remaining approximately the same, adjusted for the bonus ratio.
This is Ashok Leyland’s first bonus issue in nearly 14 years, with the last such corporate action announced in 2011.
As of March 31, 2025, the company had about 14.2 lakh small retail shareholders, holding a combined 9.38% stake.
About the company
Ashok Leyland is a leading manufacturer of medium and heavy commercial vehicles (M&HCVs) in India, and a key player in the automotive sector.
The stock’s decline today reflects the adjustment to its ex-bonus price, which is a normal market reaction to such corporate actions.
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