Ashok Leyland may issue bonus shares for the first time in 14 years, with the proposal set for discussion in its upcoming board meeting on May 23, 2025.
Overview
Ashok Leyland, the flagship of the Hinduja Group, has shareholders smiling again. Fresh off the announcement of a juicy 425% second interim dividend (Rs 4.25 per share) for FY25, the company has now hinted at something even more exciting—a potential bonus issue. If approved in the latest board meeting on May 23, this would mark the company’s first bonus share issue in over a decade, a major milestone for the commercial vehicle giant. Shares responded accordingly, closing 2.3% higher at Rs 242.8 on the NSE. Not a bad way to say “thanks” to long-term investors.
What’s Happening?
In a recent exchange filing, Ashok Leyland informed shareholders that its board will be meeting this Friday to review its FY25 financials and possibly greenlight bonus shares. This bonus buzz comes on the heels of back-to-back dividend payouts—Rs 2 earlier, and now Rs 4.25 per share—adding up to a total interim dividend of Rs 6.25 per share (that’s a massive 625% on a face value of Re 1).
In case you missed it: The second interim dividend will hit eligible investors’ accounts on or before June 14, 2025. That’s real money, not Monopoly cash.
Why It Matters?
This isn’t just another board meeting. It’s a big deal because:
- It’s the first bonus issue in 14 years.
- It signals financial strength and confidence from the management.
- It could widen investor interest by making shares more affordable via increased liquidity.
Plus, with a market cap nearing Rs 71,000 crore and shares still trading under Rs 300, this potential bonus could drive more action into Ashok Leyland stock.
Investor Reaction
Investors clearly liked the smell of free shares. Ashok Leyland stock revved up by over 2% on Monday, reflecting market optimism around the upcoming bonus shares and strong dividends.
