1:1 bonus share: Bus & truck manufacturer-Ashok Leyland wins order worth Rs 668.76 crore from The Institute of Road Transport, Tamil Nadu
DSIJ Intelligence-1 / 17 Oct 2025/ Categories: Mindshare, Trending
The stock is up by 45 per cent from its 52-week low of Rs 95.20 per share.
Ashok Leyland Limited has secured a significant domestic contract from The Institute of Road Transport, Tamil Nadu, for the supply of 1,937 buses for the Tamil Nadu State Transport Undertakings. The total net contract value is approximately Rs. 668.76 Crores. This order involves providing a mix of AIS 153-compliant BS VI diesel-fuelled chassis and low-floor/semi-low-floor fully built passenger buses. The contracts were awarded following a regular tender process with standard business terms, and there are no adverse terms or conditions. This major award solidifies Ashok Leyland's position as a key supplier to state transport bodies in India, supporting the modernisation of public transit in Tamil Nadu.
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The execution of this substantial order will be phased over more than a year. The bulk of the delivery, consisting of 1,701 BS VI diesel chassis and low-floor fully built buses, is scheduled for the period between October 2025 and March 2026. The remaining 236 semi-low-floor diesel BS VI fully built buses will be delivered later, specifically from September 2026 to January 2027. This phased supply schedule ensures a steady rollout of new, modern, and compliant vehicles into the fleet of the Tamil Nadu State Transport Undertakings.
About the Company
Ashok Leyland, the flagship company of the Hinduja Group, is a prominent player in the global commercial vehicle market. As India's second-largest manufacturer of commercial vehicles, it holds a significant position, further solidified by its ranking as the fourth-largest bus manufacturer and ninth-largest truck manufacturer worldwide. Headquartered in Chennai, the company operates as a highly integrated manufacturing entity with a robust and diversified distribution and service network spanning across 50 countries.
Beyond manufacturing, Ashok Leyland is also committed to road safety and driver skill development, having established driver training institutes across India that have trained over 800,000 drivers. The shares of the company ex-traded bonus share in the ratio 1:1; i.e., 1 new share for every 1 share held with the ex-date for the bonus share on Wednesday, July 16, 2025. The company has a market cap of over Rs 80,000 crore and FIIs increased their stake to 24.06 per cent in June 2025 compared to June 2025. The stock is up by 45 per cent from its 52-week low of Rs 95.20 per share.
Disclaimer: The article is for informational purposes only and not investment advice.