Business Standard

Ashok Leyland gains on plan to raise stake in British bus maker

Related News

The announcement was made after market hours on Tuesday, 20 December 2011.

Meanwhile, the BSE Sensex was up 206.95 points, or 1.36%, to 15,382.03.

On BSE, 1.99 lakh shares were traded in the counter as against an average daily volume of 6.95 lakh shares in the past one quarter.

The stock hit a high of Rs 23.20 and a low of Rs 21.70 so far during the day. The stock had hit a 52-week low of Rs 20.75 on Tuesday, 20 December 2011. The stock had hit a 52-week high of Rs 34.35 on 5 January 2011.

The stock had underperformed the market over the past one month until 20 December 2011, sliding 13.92% compared with the Sensex's 7.31% decline. The scrip had also underperformed the market in past one quarter, falling 17.05% as against 11.25% fall in the Sensex.

The mid-cap commercial vehicles maker has an equity capital of Rs 266.07 crore. Face value per share is Re 1.

The Hinduja Group company had acquired a 26% stake in Optare in July 2010. The proposed hike follows a refinancing agreement announced on Tuesday (20 December 2011) which, subject to Optare shareholders' approval, will enable synergy with Ashok Leyland's global plans for buses.

The re-financing has been achieved by Ashok Leyland facilitating a credit-line to support Optare's re-banking options and providing a substantially improved working capital facility for the business. Simultaneously, Ashok Leyland will reach 75.1% shareholding through placement of shares raising new equity.

Optare is Britain's leading maker of advanced low-floor integral buses and employs around 500 people across the group, principally at its new assembly facility in Sherburn in Elmet, Yorkshire. The company produces a wide range of fuel efficient buses of its own integral design. In addition Optare has pioneered its 'EcoDrive' programme across all of its products which deliver a wide range of low carbon power options, including hybrid, full electric and dual fuel models.

Ashok Leyland's net profit fell 7.8% to Rs 154.08 crore on 14% increase in net sales to Rs 3094.57 crore in Q2 September 2011 over Q2 September 2010.

Ashok Leyland is the flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in India. With seven manufacturing locations at Chennai, Hosur (three plants), Alwar, Bhandara and Pantnagar (Uttarakhand), the company has a production capacity of 150,000 vehicles. Ashok Leyland has associate companies in the Czech Republic, the UAE and a joint venture in Sri Lanka, besides exports to over 20 countries worldwide.

Powered by Capital Market - Live News

 

Read more on:   

Read More

Hindustan Unilever leads gainers in 'A' group

United Spirits, Shriram Transport Finance Company, Colgate Palmolive (India) and Nestle India are among the other gainers.

Quick Links

Back to Top