One Share Becomes Two: What’s Behind Ashok Leyland’s Generous Split?

Ashok Leyland, the flagship firm of the Hinduja Group, is to reward its shareholders with a 1:1 bonus issue—the last one since 2011. With the record date set for July 16, 2025, Wednesday (July 15) being the final opportunity for shareholders to buy shares and qualify for this bonanza.

 

Key Highlights:

 

- Bonus issue gives one fully paid equity share for each share owned.

- Allotment date is July 17, with listing of bonus shares from July 18.

- Bonus issue was announced in May together with good Q4 figures and Rs 4.25 per share dividend.

 

Market Snapshot:

- Ashok Leyland shares closed at Rs 252.90 on Monday, an increase of 2.7 percent.

- Angel One has provided a buy rating with the target price of Rs 295, citing sectoral tailwinds.

 

Strategic Context:

- The bonus issue is designed to increase liquidity and retail participation without watering down shareholder value.

- The company has a T+1 settlement cycle, and hence July 16 is the record as well as ex-date.

- Ashok Leyland will have Rs 1,000 crore of capex in FY26 on EVs, alternative fuels, and defence.

 

Investor Impact

- After the bonus, share number doubles but price moves proportionally.

- For example, 100 shares of Rs 250 are reduced to 200 shares of approximately Rs 125 each.

- This move indicates confidence in long-term growth and robust buffers.

 

Sources: News18, Economic Times Auto, Zee Business, India Infoline, MSN Money, ET Now, GoodReturns.