Ashok Leyland to raise Rs 750 cr via private placement

Co said the fund is being raised "to finance the capital requirements of the company".

Hinduja group flagship firm Ashok Leyland today said it will raise Rs 750 crore through issue of securities on private placement basis to finance the firm's capital expenditure requirements.

"It is proposed to raise funds up to Rs 750 crore in one or more tranches and/or one or more offerings, including by way of a qualified institutions placements to eligible qualified institutional buyers," Ashok Leyland said in a filing to the BSE.

In a meeting of the board of directors held today, it was decided that the securities will be listed on Indian stock exchanges and in case of international offerings, it will be done through a public offer or private placement, it added.

The proposal is subject to the approval of shareholders in the next Annual General Meeting, the company said.

Ashok Leyland said the fund is being raised "to finance the capital requirements of the company".

Last month, the company had announced to invest Rs 4,000 crore along with its joint venture partner Nissan to set up a manufacturing facility in Tamil Nadu to roll out light commercial vehicles.

The JV had signed an MoU with the state government to acquire 380 acres of land at Pillaipakkam to set up the plant.

Though the facility would be used for both partners -- Ashok Leyland and Nissan, some portion of it would also be used by the Ashok Leyland to manufacture medium and heavy commercial vehicles.

Besides, Ashok Leyland is planning to launch its latest Avia range of vehicles in the domestic market in 2012-13. Currently, Avia range of vehicles are produced for the European markets at its plant in Prague in Czech Republic.

The company also announced to roll out its world's first single-step 'Jan Bus' in the domestic market by this year.

The bus was formally unveiled at the Auto Expo held in January this year. It will be available in both diesel and compressed natural gas versions in Bharat Stage III and IV emission norms standards.