Bonus Alert: 14 lakh small shareholders of this CV producer set to get free shares after 14 years

Medium and Heavy Commercial Vehicle manufacturer Ashok Leyland Ltd. will be considering a bonus issue of shares during its board meeting on Friday, May 23.

The proposal for the bonus issue, will be considered along with Ashok Leyland's fourth quarter results, the company said in an exchange filing on Monday, May 19.

This bonus issue will be subject to requisite approvals from the company's shareholders.

This will also be the first instance in nearly 14 years that Ashok Leyland will be considering a bonus issue of shares. Record date for this bonus issue has not been decided yet.

The last time Ashok Leyland had issued bonus shares to its shareholders was back in 2011, when it had issued one free share for every one share held.

During this period, Ashok Leyland has paid dividend to its shareholders, which has ranged between ₹0.45 per share to ₹4.95 per share, which it had paid in April 2024.

At the end of the March quarter, Ashok Leyland had as many as 14.18 lakh shareholders, who had a 9.38% stake in the company. Small shareholders are classified as those with authorised share capital of up to ₹2 lakh.

India's domestic mutual funds have a 7.29% stake in Ashok Leyland at the end of the March quarter, while insurance companies had a 6.26% stake.

Shares of Ashok Leyland are trading 2.2% higher on Tuesday at ₹246. The stock has risen 11% in the last one month.