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Hinduja Leyland Finance calls off IPO plan

Existing investors infused funds to meet the requirement

Gireesh Babu  |  Chennai 

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Ltd, a subsidiary of commercial vehicle major Ashok Leyland Ltd, offering vehicle finance and loan against property, has decided to call off its plans for an Initial Public Offering (IPO). The was expected to take place in the previous fiscal year.

The company was expecting to raise around Rs 500 crore as equity through The was planned during the last quarter of last year and with demonetisation, the company decided not to hit the market during the time.

"The Board of Directors of HLFL at their meeting held on May 23, 2017 had decided to withdraw the (Draft Red Herring Prospectus) and accordingly the had been withdrawn from Sebi on June 16, 2017," said a filing by the company in the

"The existing investors infused around Rs 250 crore into the company last year. We raised another Rs 100 crore during this quarter, which served the requirement of capital," said S Nagarajan, executive vice chairman of the company.

holds around 86 per cent of the shares in the company, including around 57 per cent from Ashok Leyland. Private equity firm Everstone holds around 14 per cent shares in the company.

With the latest fundraising, the capital adequacy ratio is around 16 per cent. It has an asset under management of around Rs 14,000 crore.

It has registered a gross income of Rs 1,450 crore and a net profit of Rs 165 crore. The AUM last year grew by around 40 per cent and this year it is expected to grow at around 35-40 per cent.

The company may look at at a later stage, he said. is into offering vehicle loans and loan against property, focusing mostly on the vehicle financing business.

First Published: Wed, June 21 2017. 22:58 IST