Ashok Leyland bonus shares get credited to demat accounts; stock drops marginally

Synopsis

Ashok Leyland's shares experienced a slight dip after the allotment of bonus shares in a 1:1 ratio, increasing the total outstanding shares. Trading commenced on the newly issued shares, which rank equally with existing ones. Technical indicators present a mixed outlook, with the RSI in neutral territory and the stock trading above its 30-day SMA, suggesting potential medium-term strength.

Ashok Leyland shares traded with a marginal dip following the completion of its bonus share allotment. The company issued bonus shares at a 1:1 ratio, granting shareholders one extra share for every share held.

This initiative, intended to enhance liquidity and reward shareholders, did not change the company’s overall market capitalisation but doubled the total number of outstanding shares.

The Ashok Leyland stock was down 0.89% at Rs 122.65 apiece on the BSE at around 10:52 am.

In a regulatory filing, in continuation of its previous communications dated May 23, June 4, July 7, and July 9, 2025, the company confirmed that on July 17, 2025 — the deemed date of allotment — it has allotted 293.65 crore bonus equity shares of Rs 1 each.

The bonus shares have been issued in a 1:1 ratio, meaning one fully paid-up bonus share for every one existing share held by eligible shareholders as of the record date, July 16.

These bonus shares were made vailable for trading starting today, Friday, July 18. The newly allotted shares will rank pari passu in all respects with the existing equity shares of the company.

Technical Indicators Signal Mixed Trend for Ashok Leyland

Also read: Reliance Q1 results today: Ambani's triple-engine turnaround targets best quarter in 18 months

Moving Averages: The stock is showing bullish signals on its moving average indicators. It is currently trading above 5 out of the 8 simple moving averages (SMAs) being tracked. While the stock appears to be under pressure in the short term (i.e., below some short-duration SMAs), it is trading above its 30-day SMA, indicating underlying strength in the medium term and a potential for upward momentum if the trend holds.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

...moreless

...moreless