The board of Nxtdigital Ltd has approved the proposed merger of Hinduja Leyland Finance Ltd (HLFL) with itself. The proposed scheme for the merger of HLFL will come into effect after the on-going scheme of transfer of the “Digital Media & Communications Business undertaking” into Hinduja Global Solutions Ltd (HGSL) is completed, it said in a notice to the stock exchanges.

The Board also approved the share exchange ratio for the proposed merger. Accordingly, shareholders of HLFL will get 23 fully-paid equity shares of face value of ₹10 per share in NDL for every 10 fully-paid equity shares of face value of ₹10 each held by them in HLFL.

HLFL, a subsidiary of Ashok Leyland, is one of India’s leading finance NBFCs with an AUM of over ₹29,000 crore.

The proposed merger, once completed, will fuel the expansion plans of both companies, it said.