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Ashok Leyland to acquire 19% stake in Hinduja Leyland Finance

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Ashok Leyland to acquire 19% stake in Hinduja Leyland Finance

Hinduja Leyland Finance Limited is an RBI registered non-banking finance company and owned the holding company of Ashok Leyland.

Chennai based Commercial vehicle manufacturer, Ashok Leyland, to acquire 19 per cent stake in Hinduja Leyland Finance Limited (HLFL) for Rs 1200 crore, the company said in BSE filing on Wednesday.

The second-largest commercial vehicle manufacturer in its communication said that “The board of directors of the company, at the meeting held today, have approved to acquire up to 19 per cent additional equity shares in Hinduja Leyland Finance Limited, from the existing shareholders, in tranches, for a consideration not exceeding Rs.1200 Crores subject to such approvals, consents, sanctions and permissions of the appropriate authorities, as may be necessary.”

HLFL is an RBI registered non-banking finance company and owned the holding company of Ashok Leyland. It posted a revenue of Rs 2560.64 cr in FY19, booking a net profit of Rs 275.60 cr.

Last month, Ashok Leyland entered into a supplemental share purchase agreement with Everfin holdings, a shareholder of Hinduja Leyland Finance (HLFL), for agreeing to acquire collectively, 3,28,14,401 shares of Rs 101- each (constituting 7% in the paid-up share capital of HLFL) at an agreed price of Rs.119/- per share aggregating Rs 390.49 crore

The commercial vehicle maker had sold 18,245 units in February last year. Domestic commercial vehicle sales were down 29 per cent at 10,612 units as against 17,352 units in the year-ago month, it added. Medium and heavy commercial vehicle sales in the domestic market were down 47 per cent to 6,745 units as compared to 12,621 units in February last year.

Similarly, light commercial vehicle sales were down 18 per cent at 3,867 units as against 4,731 units in the corresponding month last year.

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