Shares of Ashok Leyland appeared to halve in value on Wednesday, showing a drop of nearly 51%, falling from Rs 250.85 to Rs 123.95, a move that may have startled many investors.
But the sharp fall is not a market rout; its the result of the companys 1:1 bonus issue, which took effect today, and has adjusted the stock price accordingly without impacting the value of shareholder holdings.Ashok Leylands stock began trading ex-bonus from Wednesday, July 16, following the company's decision to issue one bonus share for every one share held.
The record date for the bonus issue is also July 16, meaning shareholders who held the stock as of the close on Tuesday are eligible to receive the additional shares.The company's shares had closed at Rs 250.85 on Tuesday, July 15.
On Wednesday morning, it opened at Rs 123.95, a 50.6% decline that corresponds directly to the bonus adjustment.This is further to our intimation dated July 7, 2025, informing the Shareholders approval for issue of Bonus Shares in the ratio of 1:1 i.e.
1 (One) new fully paid-up Equity Shares of Rs 1/- each for every 1 (One) existing fully paid-up Equity Share of the Company, Ashok Leyland said in an exchange filing.Live EventsDespite the fall in per-share price, investors have not lost any value.
The total worth of their holdings remains the same, though the number of shares will double once the bonus shares are credited.
For example, a shareholder who held 20 shares worth Rs 4,000 at Rs 200 apiece will soon hold 40 shares valued at roughly Rs 100 each, preserving the overall portfolio value.However, the bonus shares have not yet been credited into demat accounts, the deemed allotment is scheduled for Thursday, July 17, with trading set to begin on Friday, July 18.In this regard, we wish to inform that the Allotment Committee has fixed Wednesday, July 16, 2025, as the record date for determining the eligible shareholders for allotment of Bonus Shares.
Further, in accordance with SEBI circular dated September 16, 2024, the deemed date of allotment of Bonus Shares shall be Thursday, July 17, 2025, and these Bonus Shares will be made available for trading on the next working day of allotment i.e.
Friday, July 18, 2025, the company said in a filing.As of March 2025, Ashok Leyland had 14.2 lakh retail shareholders, those with up to Rs 2 lakh in share capital, who collectively held 9.38% of the company.
All shareholders holding the stock as of July 16 will receive bonus shares.This is Ashok Leylands first bonus issue since 2011 and was originally announced in May 2025 alongside the companys March quarter results and final dividend.
| Ashok Leyland 1:1 bonus issue record date tomorrow.
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