1:1 bonus share: Bus & truck manufacturer enters battery manufacturing with a long-term exclusive partnership with CALB (HK) Co. Ltd

On Tuesday, shares of Ashok Leyland Ltd gained 3.75 per cent to Rs 132.80 per share from its previous closing of Rs 128 per share.

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Ashok Leyland has entered into a long-term, exclusive partnership with CALB (HK) Co., Ltd., a global leader in new energy technology, for the development and manufacturing of batteries. This strategic domestic partnership is a key move for Ashok Leyland to cater to the growing demand for electric vehicles (EVs) and energy storage systems, for both its own vehicle portfolio and other customers. The company will invest over Rs 5,000 crore in this business over the next 7-10 years to create a localised battery supply chain in India.

The collaboration will initially focus on the automotive sector, with plans to expand into non-automotive applications and energy storage systems in the future. As part of this initiative, Ashok Leyland will establish a Global Centre of Excellence for research and development to foster innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes. This move is a significant step towards supporting India's vision of sustainable mobility and reducing reliance on fossil fuels.

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 77,000 crore and FIIs increased their stake to 24.06 per cent in June 2025 compared to June 2025. The stock is up by 39.5 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.