Ashok Leyland Eyes Bonus Issue as Board Gears Up for Key May 23 Meeting

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Ashok Leyland Ltd, a flagship of the Hinduja Group and one of India’s top commercial vehicle manufacturers, is set for a pivotal board meeting on May 23, 2025. The agenda includes the consideration of a potential bonus share issue, alongside the approval of audited financial results and a final dividend for FY25. This development comes on the heels of a robust dividend payout and heightened investor interest.

Key Highlights:

Bonus Issue on the Table: The Board will discuss the proposal for issuing bonus shares on May 23, a move that could significantly enhance liquidity and reward long-term shareholders if approved. The company last issued a bonus in 2011, making this a potentially landmark event for investors.
Dividend Momentum: Ashok Leyland recently declared a second interim dividend of ₹4.25 per share, with a record date of May 22, 2025, taking the total interim dividend for FY25 to ₹6.25 per share. The payout will be credited by June 14, 2025.
Earnings Watch: The same board meeting will also see the announcement of Q4 and full-year results, with analysts expecting continued strength despite a recent dip in domestic vehicle sales. The stock has shown resilience, trading near ₹238 and up nearly 15% over the past year.
Investor Sentiment: The prospect of a bonus issue, combined with strong dividend payouts and stable financials, has kept Ashok Leyland in the spotlight during the current earnings season.

Source: Economic Times, NDTV Profit, Angel One, Value Broking