Investors rushed to book profits after Ashok Leyland Limited witnessed a 3% rally, causing a 2% decline in its shares to Rs 161 during morning trade on March 15. Despite trading at Rs 162 at 10 am, down 1% from the previous close on the NSE, the stock has faced challenges this year, dropping nearly 10% on the bourses.
In a notable development, the company’s subsidiary, Hinduja Tech, sealed a significant deal with Creador, a private equity firm, securing a $50 million investment. This investment translates to Creador acquiring a 19.6% stake in Hinduja Tech, valuing the subsidiary at a post-money equity value of $255 million. Creador’s strategic move underscores its confidence in Hinduja Tech’s growth potential and marks its commitment to partnering with businesses across Southeast Asia and India.
The infusion of capital marks a transformative moment for Hinduja Tech, unlocking new avenues for growth and innovation in the sustainable engineering mobility sector. With this strategic investment, the company is poised to fortify its research and development capabilities, fueling both organic expansion and strategic acquisitions. By leveraging this capital influx, Hinduja Tech aims to amplify its global presence and solidify its position as a leading provider of sustainable mobility solutions.
In FY 2023, Hinduja Tech embarked on a significant expansion journey with the acquisition of Drive System Design, a prominent UK and US-based firm specializing in e-powertrain design. This strategic move not only broadened Hinduja Tech’s portfolio but also enhanced its expertise in cutting-edge technologies, further strengthening its competitive edge in the market.
CEO Kumar Prabhas articulated the company’s ambitious growth trajectory in the sustainable engineering mobility segment, emphasizing the pivotal role of the investment in accelerating Hinduja Tech’s global expansion initiatives. He underscored the company’s commitment to fostering partnerships across various sectors, from conventional to electric vehicles, to drive innovation and propel sustainable mobility solutions forward.
Meanwhile, Ashok Leyland delivered an impressive performance in the third quarter of FY24, reporting a notable 60% increase in standalone net profit, reaching Rs 580 crore. Despite prevailing market challenges, the company’s standalone revenue demonstrated resilience, registering a modest uptick to Rs 9,273 crore. This performance underscores Ashok Leyland’s agility and adaptability in navigating the dynamic market landscape while reaffirming its position as a key player in the automotive industry.
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