Shares of Ashok Leyland sparked confusion on Tuesday after they appeared to plunge over 50% in early trade, briefly flashing a quote of around ₹92 down from Monday’s close of ₹186. But the drop wasn’t real. It was a bonus issue adjustment, not a crash.
The company issued 1:1 bonus shares, effectively doubling the number of shares outstanding. As a result, the share price was halved to reflect the new capital structure a standard corporate action with no impact on shareholder value.
Despite the technical adjustment, the stock still ended the day 1.5% lower, making it one of the top losers on the Nifty Midcap 150 index. This minor decline is unrelated to the bonus and likely reflects broader market sentiment.
Ashok Leyland clarified that there was no negative news, and investor holdings remain intact just in a 2x quantity at half the price per share. Market experts urge caution against misinterpreting price charts during such adjustments.
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