Hinduja Leyland Finance to raise Rs 5 billion as primary capital

Company to put up 31 mn shares on offer; Everstone, the only outside investor in the firm to make a partial exit

Hinduja Leyland Finance, Hinduja Group company, is planning to go for an IPO shortly, as it seeks to raise up to Rs 5 billion as primary capital on an offer for sale of 31 million shares.

The firm is holding roadshows in India and abroad to get a fix on the valuation for its secondary capital. Everstone, the only outside investor in the company is expected to make a partial exit with the IPO.

Sachin Pillai, chief executive officer, Hinduja Leyland Finance, said that while the company yet to finalise the exact quantum as it is currently doing the valuation, it will raise around Rs 5 billion as primary capital or tier-I, to support the growth plans.

Pillai added that nearly 93 per cent of the company's shares are held by Hinduja Group companies, including Ashok Leyland, which holds 61.9 per cent. The balance seven per cent is held by Everstone.

On the company's growth prospects, he said its AUM has been growing at 48 per cent and bottomline at 32.9 per cent.

Currently, the AUM stands at Rs 200 billion, of which 42 per cent is AL M&HCV, the mainstay for the company. The other assets include small vehicles, three-wheelers, two-wheelers and residential loans acquired from NBFCs.

Besides the company also floated a housing subsidiary, which is currently as Assets Under Management (AUM) over Rs 7 billion.