Hinduja Leyland Finance (HLF), the non-banking financier and a subsidiary of commercial vehicle maker Ashok Leyland has raised ₹910 crore of equity through the participation of Qualified Institutional Buyers (QIB). With this fundraising through QIBs, parent Ashok Leyland (ALL)’s shareholding in HLF has decreased to 60.43 per cent from 68.8 per cent.
HLF’s board approved the allotment of issuance of 65 million equity shares of ₹10 each at an issue price of ₹140 per share aggregating to a total of ₹910 crore. Shares will be issued to five QIBs, and they will collectively hold 12.16 per cent in HLF after allotment, according to a statement.
The infusion leads to an increase in the capital adequacy ratio of HLF to 22.50 per cent from 18.70 per cent in March 2022.
Sachin Pillai, Managing Director and CEO of HLF, said the current fund infusion would take care of medium-term growth requirements from a capital adequacy perspective.
It augurs well with the scheme of arrangement with NXT Digital which is underway and progressing according to the schedule planner. The listing of the merged entity’s equity shares will be subject to necessary regulatory and statutory approvals after following the due process.
On a consolidated basis, the company managed assets in excess of ₹30,700 crore, which includes ₹4,620 crore of housing finance assets for the quarter that ended June 30, 2022. The company has presence in 1,750 locations across the country with 9,000 employees.
Freight aggregation platform
Along with its parent ALL, the company has formed a joint venture with GRO Digital Platforms Ltd, wherein it has launched its freight aggregation platform in the earn space, as well as fuel, tyre, and repairs aggregation platform in the, operate space with a customised high-end telematics platform.
HLF has established its digital presence in the vehicle disposal space through its fully-owned subsidiary GaadiMandi Digital Platforms Ltd. The platform facilitates the purchase and sale of pre-owned vehicles as well as developing digital capabilities for yard management, refurbishment, documentation and refinancing as well.