Ashok Leyland Shares Drop 50% After 1:1 Bonus Issue, No Loss to Investors

Ashok Leyland shares fell 50% on July 16, not because of a market crash, but due to a 1:1 bonus issue. The stock is now trading ex-bonus, meaning its price has been adjusted. Investors now hold double the number of shares at half the price, so the total value of their investment stays the same. For example, 1 share worth ₹100 becomes 2 shares worth ₹50 each. The bonus was earlier approved in May, and July 16 was set as the record date to determine eligible shareholders.