Ashok Leyland Boosts Stake in Optare Plc UK, Shares Rise 1%

6 Dec 2023 , 01:56 PM

Ashok Leyland shares rise 1% to Rs 176 after announcing a stake increase in Optare Plc UK for about Rs 662 crore. The commercial vehicle maker’s stake in Optare Plc UK will now be approximately 92.20%, up from the previous 91.63%.

Optare is engaged in manufacturing and selling commercial vehicles, reporting a consolidated revenue of Rs 230 crore as of March 2023. Optare serves as the holding company for Switch Mobility Limited and Switch Mobility Automotive Limited, both subsidiaries of Ashok Leyland.

The additional stake purchase aims to support capital expenditure, research and development, and operational requirements for Optare and Switch Mobility in the UK and India. In November, Ashok Leyland, a Hinduja Group flagship, experienced a 3% decline in sales, with medium and heavy commercial vehicle sales dropping by 10% to 8,500 units.

However, sales of light commercial vehicles grew by 9% to 5,553 units during the same period.

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