Mumbai: Hinduja Leyland Finance (HLF), the vehicle finance unit of Ashok Leyland, will be listed on the stock exchange through a reverse merger with NXTDigital, a listed media company of the Hinduja Group.
This merger is expected to happen within the current financial year, said Dheeraj Hinduja, chairman of Ashok Leyland. He believes this will help reveal the true value of Leyland Finance, which is not currently reflected in Ashok Leyland’s share prices.
As of December 31, 2023, Hinduja Group entities held 74.8% of HLF, with Ashok Leyland being the main shareholder at 60.4%. The merger will turn HLF into a Non-Banking Financial Company (NBFC), said KM Balaji, Ashok Leyland’s Chief Financial Officer.
He mentioned that the current book value of HLF is Rs 3,200 crore, based on Ashok Leyland’s holding rate of Rs 60 per share, but the value could be much higher once listed.
Ashok Leyland’s Financial Performance
Ashok Leyland reported a strong operational performance with record-high truck and bus sales of 43,893 units, compared to 41,329 units in the previous period. This boosted revenue to Rs 8,599 crore, up from Rs 8,189 crore. However, the company’s net profit fell by 8.7% to Rs 525.58 crore from Rs 576.42 crore, due to the impact of last year’s deferred tax liability.
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