Ashok Leyland Slips Despite Positive News as Investors Book Profits

15 Mar 2024 , 11:29 AM

Ashok Leyland Limited shares fell more than 2% to ₹161 in early trade on March 15, as investors hurried to book gains after the company gained 3% the day before.

At around 11.16 AM, Ashok Leyland was trading 2.01% lower at ₹160.80, against the previous close of ₹164.10 on NSE. The counter touched an intraday low of ₹160.60.

The business also stated that a subsidiary, Hinduja Tech, has inked a formal deal for Creador to spend $50 million to acquire a 19.6% ownership in the company.

This transaction gives Hinduja Tech a post-money equity value of $255 million. Creador is a private equity firm that focuses on collaborating with companies in Southeast Asia and India.

The cash injection will enable the company to strengthen its R&D capabilities through organic expansion and strategic acquisitions. This initiative is intended to expand its worldwide reach and strengthen its position in sustainable engineered mobility solutions. Hinduja Tech purchased Drive System Design, a firm located in the UK and the United States that specialises in e-powertrain design, in fiscal year 2023.

Hinduja Tech established ties with major stakeholders in the mobility sector. These partnerships range from traditional buses and sports automobiles to electrified and self-driving vehicles. “We have a bold expansion strategy in the sustainable engineering transportation area. Their investment would enable Hinduja Tech to expedite its worldwide expansion objectives,” the company’s CEO, Kumar Prabhas, stated in an exchange filing.

Ashok Leyland recorded a standalone net profit of ₹580 Crore for the third quarter of FY24, a 60% increase over the previous year’s period. The company’s standalone revenue for the quarter was ₹9,273 Crore, up 2.70%.

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