Ashok Leyland seeks shareholder approval to raise money through QIB

To seek shareholders' nod for raising money through qualified institutional buyers

Ashok Leyland will seek shareholders approval to raise money through Qualified Institutional Buyers (QIBs) and other routes. The proposed fund raising is to support the company's capex, working capital and investment in joint ventures (JVs) and other purposes.

In a notice to its shareholders, the company said the proposed offering of securities by the company is for funding capital expenditure, long-term working capital requirements, investment in JVs, associate companies (including overseas companies), expanding of the existing business, development of infrastructure for future growth and other approved corporate purposes.

The company did not mention the quantum it is proposing to raise.

ASHOK LEYLAND
The company said the proposed offering of securities by the company is for

• Funding capital expenditure,
• Long-term working capital requirements,
• Investment in JVs,
• Associate companies (including overseas companies),
• Expanding of the existing business,
• Development of infrastructure for future growth
• And other approved corporate purposes.

However in a recent interaction, company's management said it has lined up capex and investment to the tune of around Rs 250-300 crore during the current fiscal.

The company also stated that during last year's AGM, the company obtained approval from shareholders to raise up to Rs 2,000 crore through NCDs on private placement basis to not more than 200 persons. However, the same was not utilised till now.

In order to augment long-term resources for financing, the ongoing capital expenditure, long-term loan repayment and for general corporate purposes, the company may offer or invite subscription for secured/ unsecured redeemable non-convertible debentures in one or more series/ tranches on private placement basis for an amount up to Rs 300 crore.

The company noted, borrowing upto Rs 300 crore is within the overall borrowing approval limit of Rs 8,000 crore approved by the shareholders during last AGM.

Consent of the members was sought for passing an enabling special resolution as set out, that enables the Board of the company to offer or invite sub