Ashok Leyland tumbled 3.96% to Rs 36.40 at 10:02 IST on BSE on equity dilution worries after the company said its fund-raising committee passed a resolution for a qualified institutional placement.
The company made the announcement after market hours on Thursday, 26 June 2014.
Meanwhile, the BSE Sensex was up 101.12 points, or 0.40%, to 25,163.79.
On BSE, so far 12.10 lakh shares were traded in the counter, compared with an average volume of 30.67 lakh shares in the past one quarter.
The stock hit a high of Rs 37.20 and a low of Rs 35.70 so far during the day. The stock hit a 52-week high of Rs 39 on 26 June 2014. The stock hit a 52-week low of Rs 11.82 on 29 August 2013.
The stock had outperformed the market over the past one month till 26 June 2014, rising 18.81% compared with 1.40% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 68.07% as against Sensex's 13.43% rise.
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The large-cap company has an equity capital of Rs 266.07 crore. Face value per share is Re 1.
Ashok Leyland announced that its fund-raising committee had passed a resolution authorising the qualified institutional placement (QIP) be opened on 26 June 2014. A preliminary placement document in this regard had been filed with the regulator.
The floor price for the QIP, based on the Securities and Exchange Board of India's pricing formula, was Rs 34.30 an equity share.
Ashok Leyland's net profit surged 142.2% to Rs 363.39 crore on 17.2% decline in net sales to Rs 3020.96 crore in Q4 March 2014 over Q4 March 2013.
Ashok Leyland, the flagship of the Hinduja Group, is the second largest maker of commercial vehicles in India after Tata Motors.
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