The board has approved the investment of around ₹325 crore in the company’s UK-based subsidiary Optare Plc in one or more tranches.
It also approved investments of up to ₹500 crore in equity shares of its step-down subsidiary Hinduja Housing Finance by way of secondary purchase of shares from Hinduja Leyland Finance, a material subsidiary, in one or more tranches.
Both investments are to be completed by March 31, 2027.
While Ashok Leyland’s current shareholding in Optare Plc is 93.28%. Post allotment, it would be 93.49%. Meanwhile, it currently indirectly holds 61.12% in HHFL. Post allotment, its direct shareholding would be 8.9% and indirect holding would be 55.68%.
Ashok Leyland reported its June quarter earnings on Friday.
Its net profit increased 2.6% to ₹609 crore from ₹594 crore in the first quarter last year. Its revenue increased 10.4% to ₹9,634 crore from ₹8,724.5 crore in the previous fiscal.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) in the June quarter were flat at ₹969 crore. Its margins contracted marginally to 10.1% from 11.1% in the year-ago period.
Shares of Ashok Leyland were trading 1.7% lower at ₹173.31 apiece at 2.05 pm on Friday. The stock has gained 11.7% in the past month but is down 6.2% this year, so far.
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