Ashok Leyland to acquire Nissan's stake in Hinduja Tech By CIOReviewIndia Team

Ashok Leyland to acquire Nissan's stake in Hinduja Tech

CIOReviewIndia Team | Thursday, 25 February 2021, 06:20 IST

The commercial vehicles manufacturer on Thursday announced that it will acquire 38% stake in Hinduja Tech from Nissan International Holding BV.

Ashok Leyland has entered into a share purchase agreement with Nissan International Holding BV to acquire 5.85 crore shares, constituting 38% stake, of Hinduja Tech (HTL) for a total consideration of Rs 70.20 crore. Subsequently, HTL will become a wholly-owned subsidiary of Ashok Leyland.

HTL is engaged in the business of IT & ITeS. The acquirement of shares is at arm's length basis. At present, Ashok Leyland owns 62% in HTL and the remaining is held by Nissan International Holding B.V.

HTL had a united revenue of Rs 226 crore and profit after tax of Rs 15.95 crore as on 31 March 2020.

Shares of Ashok Leyland rose 0.98% to Rs 128.3 on BSE. Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

The company posted a standalone net loss of Rs 19.38 crore in Q3 FY21 as against net profit of Rs 27.75 crore in Q3 FY20. Net sales jumped 20.5% to Rs 4,789.82 crore in Q3 FY21 over Q3 FY20.