New Delhi: Hinduja Group flagship Ashok Leyland board on Tuesday said, meeting with board members to discuss issuing securities to raise Rs 200 crore in June 2020.
Ashok Leyland also paid a dividend last year to its shareholders of Rs 3.10 per share on July 23, 2019. But due to lockdown and restrictions, it only declared a dividend of Rs. 0.50 per share on March 19, 2020.
Will this decision aid the company that is facing liquidity challenges due to the lockdown imposed all over the country? Only time can tell the impact of this decision on a company in the long run.
About Ashok Leyland
Ashok Leyland is a manufacturing company of commercial vehicles and their components. It has a wide distribution all over India.
The commercial vehicle maker said in a regulatory filing,” A fundraising committee of the board meeting is proposed to be scheduled on June 19 discussing plan to raise Rs 200 crore. They are proposing to raise money through the issue of secured, listed, rated, redeemable non-convertible debentures.
However, the company did not state the reason for raising capital.
What are Technical Charts Suggesting?
Overall the chart is inclined towards a bullish mark for this stock. The moving average shows 13 points for bullish, one neutral, and three bearish.
In short, traders should hold onto this stock as it also emerged as a very potential stock with 52weeks high at Rs. 138.90.