The board of Hinduja Leyland Finance (HLFL), a subsidiary of truck and bus maker Ashok Leyland, has approved allotment of equity shares to qualified institutional buyers (QIB) aggregating to ₹910 crore.
Issuance of 65 million equity shares of ₹10 each at an issue price of ₹140 per share has been approved by the board. Shares will be issued to five QIBs, and they will collectively hold 12.16% in HLFL after allotment.
Ashok Leyland (ALL) said its shareholding in HLFL has fallen from 68.8% to 60.43%. “The decrease in our holding in HLFL is only due to allotment of shares to QIBs,” ALL said in a filing with the exchanges.
HLFL said with respect to the scheme of arrangement with Nxtdigital, the matter is progressing according to the time schedule and all the necessary approvals are being obtained.
Also Read: Federal Bank profits up 53% in Q2 on lower provisioning
In August this year, the HLFL’s board approved the scheme of merger by absorption of HLFL into Nxtdigital (NDL). NDL is a media and communications company, delivering services through satellite, digital cable and broadband.
HLFL is a non-deposit accepting, non-banking financial company engaged in the business of financing a wide range of commercial and personal vehicles.
According to HLFL, the proposed merger will provide scope of value unlocking for shareholders of the transferor company, integration of business operations, great efficiency in cash management and integrated operational and marketing strategies.
