NXTDIGITAL skyrockets 12% after board approves merger of Hinduja Leyland Finance into company

17 Mar 2022 , 09:48 AM

The Board of Directors of NXT DIGITAL Limited (NDL) at its meeting on Wednesday, accorded an in-principle approval for merger of Hinduja Leyland Finance Limited (HLFL), a Non-Banking Finance Company (NBFC) into NDL, subject to all statutory or regulatory approvals and approval of the shareholders.

Post the decision to transfer the Digital, Media & Communications Business undertaking to Hinduja Global Solutions Limited, (which is subject to necessary regulatory and shareholder approvals), NDL has been evaluating various proposals in line with its objective of pursuing high growth oriented business opportunities that could bring in incremental value.

In line with this commitment to creating value for its shareholders, this merger will enable the shareholders of NDL to participate in and be a part of the aggressive growth plans of HLFL, company said in a filing.

At around 9.50 am, NXT Digital Limited was trading at Rs467.75 per piece up Rs50.90 or 12.21% on the BSE. The stock hit a high of Rs469.90 per piece on the BSE after opening at Rs432.05 peice than previous closing of Rs416.85 per piece. 

HLFL is one of India’s leading finance NBFCs with an AUM of over Rs 29,000crs and a pan-India presence in 1,550 locations across 23 states and 2 Union territories. Through a vast network of branches, HLFL finances a wide range of commercial and personal vehicles, from medium and heavy commercial vehicles, light commercial vehicles and small commercial vehicles to cars, multi-utility vehicles, three wheelers, and two wheelers, as well as various kinds of used vehicles. HLFL is a subsidiary of Ashok Leyland Limited.

The proposed acquisition will result in the merged entity having assets aggregating above Rs29,000 crore and the shareholders receiving shares pursuant to the share swap valuation. The Company will appoint independent valuers to carry out the valuation exercise and submit the report including share exchange ratio.