Published on: July 16, 2025 | Author: Kapeesh Chaubey

On July 16, 2025, headlines suggested that Ashok Leyland shares crashed over 50% in a single trading session. But is there really a crash? Let’s clear the confusion.

📊 It Wasn’t a Real Crash

Yes, the share price fell from ₹250.85 to ₹124. But this wasn’t a sign of financial trouble. Instead, it was the result of a 1:1 bonus share issuance—a technical adjustment.

This move doubled the number of shares while halving the share price, keeping the total value of each investor’s holding the same.

💡 What Is a Bonus Share?

A bonus share is a free additional share issued to existing shareholders. Ashok Leyland’s 1:1 ratio means for every share you owned, you received one more. The company’s market value didn’t change—just the number of shares in circulation.

Example: If you had 100 shares worth ₹250 each (₹25,000 total), you now have 200 shares at ₹125 each. Your portfolio value is still ₹25,000.

📅 Important Dates

• July 7, 2025: Bonus issue approved (1:1)
• July 16, 2025: Shares go ex-bonus (price adjusted)
• July 17, 2025: Bonus shares credited
• July 18, 2025: Bonus shares start trading

📈 Why Issue Bonus Shares?

Bonus shares are a way to reward investors without spending cash. They also increase liquidity and show confidence in the company’s future.

In Ashok Leyland’s case, the company is performing well:

• Revenue up 5–9% year-on-year
• Profit up over 30%
• Planning ₹1,000 crore investment in EVs and clean fuels

🧠 What Should Investors Do?

Existing investors: Don’t panic. You now own more shares. The overall value of your investment hasn’t changed.

New investors: Don’t be misled by the lower price. The fundamentals are intact. Analyze the company’s performance, not just the share price.

🚀 Final Thoughts

This wasn’t a crash—it was a share price adjustment after a 1:1 bonus issue. Ashok Leyland remains strong in fundamentals, and its future strategy looks promising.

Always research thoroughly before making any investment decisions.

Disclaimer: This content is for informational purposes only and should not be considered financial advice.