Ashok Leyland Completes Allotment of Bonus Shares, in 1:1 Ratio

Chennai, July 17, 2025: Ashok Leyland Limited (NSE: ASHOKLEY, BSE: 500477) has announced the allotment of 2,93,65,27,276 bonus equity shares, each with a face value of ₹1, in a 1:1 ratio. Eligible shareholders, as of the record date of 16 July 2025, have received one fully paid-up bonus equity share for every existing share held. These newly allotted shares will be available for trading from tomorrow, Friday, 18 July 2025.

Bonus Share Allotment Details

The bonus equity shares will rank pari passu (on equal footing) in all respects with the existing equity shares of the company.

Regulatory Compliance

This allotment follows previous communications issued by the company on 23 May, 4 June, 7 July, and 9 July 2025, confirming adherence to SEBI (LODR) Regulations, 2015, Regulation 30.

Benefits of Bonus Shares for Investors and Companies

Bonus shares are a strategic tool companies use to reward existing shareholders and reflect a strong financial position. For investors, they offer several advantages:

• Increased Shareholding: Investors receive additional shares at no extra cost, potentially leading to a larger stake in the company and higher returns if the company’s value appreciates.
• Enhanced Liquidity: By increasing the number of shares in circulation, bonus issues can improve the liquidity of the stock, making it easier to buy or sell.
• No Immediate Tax Implications: Receiving bonus shares does not incur immediate tax liabilities; taxes are only paid when the shares are sold and a capital gain is realised.
• Perception of Company Health: The issuance of bonus shares often signals a company’s positive performance, robust financial health, and confidence in future growth, which can boost investor confidence.

For companies, bonus issues can make their stock more attractive to retail investors by lowering the price per share, provide an alternative to a cash dividend (especially if cash reserves need to be maintained), and capitalise on accumulated earnings or reserves.

Share Price Performance

As of 12:05 PM, the shares of Ashok Leyland were trading at ₹124.00, down by 0.48% or ₹0.60. It remains to be seen at what price the shares close at the end of today’s market session.

Road Ahead

With the bonus shares set to begin trading on July 18, Ashok Leyland may witness increased retail investor interest due to the lower share price post-adjustment. This move reflects strong fundamentals and could enhance stock liquidity in the near term. Investors may monitor price movements and volume trends to gauge sentiment. The company’s long-term growth strategy and robust order book will remain key drivers. Going forward, sustained earnings and demand in the commercial vehicle segment will be critical for momentum.

About the Company

Ashok Leyland Limited, a flagship of the Hinduja Group, is a leading manufacturer of commercial vehicles, headquartered in Chennai. The company is publicly listed on both NSE and BSE and serves a wide range of transport and logistics solutions across domestic and international markets. It operates with a market reputation for innovation in heavy vehicles, electric mobility, and sustainable transport technology.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/fe197107-c232-4d63-9f76-4f12eb4ba3d7.pdf

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