Ashok Leyland, a prominent commercial vehicle manufacturer, has officially announced July 16, 2025, as the record date for its 1:1 bonus share issue. This means that shareholders holding the stock on this date will be eligible to receive one additional share for every existing share they own. The company made this announcement on Wednesday, July 9, 2025, solidifying its commitment to rewarding its investors.
The allotment date for the bonus shares has been set for Thursday, July 17, 2025, and the shares are expected to be available for trading on Friday, July 18, 2025. This swift timeline indicates the company's efficiency in executing the bonus issue and ensuring shareholders can quickly benefit from it.
This bonus issue follows an earlier announcement in May 2024, which was made in conjunction with the company's fourth-quarter results and dividend declaration. Alongside the bonus issue, Ashok Leyland also approved a dividend of ₹4.25 per share, resulting in a total payout of ₹1,248 crore. This combined announcement underscores the company's strong financial performance and its dedication to delivering value to its shareholders.
The last time Ashok Leyland issued bonus shares was in 2011, when it also offered a 1:1 bonus ratio. This makes the current bonus issue a noteworthy event for investors, marking the first such issuance in 14 years. The announcement reflects the management's confidence in the company's future prospects and its willingness to share its success with its shareholders.
In the fourth quarter of FY25, Ashok Leyland posted a net profit of ₹1,246 crore, a 38% increase compared to the ₹900 crore reported in the same period last year. This growth was partially supported by a tax credit of ₹173 crore. The company's revenue from operations also saw a 6% rise, reaching ₹11,907 crore. Furthermore, the company's EBITDA for the quarter stood at ₹1,791 crore, representing a 12.5% year-on-year growth.
On Thursday, July 10, 2025, shares of Ashok Leyland traded lower following the announcement of the record date. The stock opened at ₹253.90 and touched an intraday high of ₹254 before declining to a low of ₹249.70 on the NSE. Last seen, the stock was trading at ₹250.05 apiece, down 0.34% on the National Stock Exchange. Despite this, the stock had gained nearly 4% in the previous month and has rallied over 12% year-to-date, with an 11% increase over the past year. On July 11, Ashok Leyland stock price closed at Rs 246.25 apiece on BSE, down by 1.4% with a market cap of Rs 72,311.98 crore.
Analysts remain cautiously optimistic about Ashok Leyland's future, with a 12-month consensus target of ₹267, supported by "Buy" recommendations from 36 analysts. This positive outlook is likely driven by expectations of improved demand in the commercial vehicle segment.
The bonus issue and the dividend payout are expected to be beneficial for investors who remain invested in the company. The record date of July 16, 2025, is crucial for determining shareholders' eligibility for the bonus shares. The deemed date of allotment is July 17, 2025, and the bonus shares are expected to be available for trading on July 18, 2025.
