Hinduja Leyland Fin raises Rs 910 cr from qualified institutional buyers

Non-banking financial firm Hinduja Leyland Finance (HLF), a subsidiary of commercial vehicle maker Ashok Leyland, on Monday announced raising Rs 910 crore from Qualified Institutional Buyers (QIB).

The Company’s board of directors approved the allotment of issuance of 65 million equity shares of Rs 10 each at an issue price of Rs 140 per share aggregating to the total of Rs 910 crore. Shares will be issued to five QIBs, and they will collectively hold 12.16 per cent in HLF after allotment.

With the fund raised through QIBs, parent Ashok Leyland (ALL) shareholding in HLF has fallen from 68.8 per cent to 60.43 per cent. The infusion leads to increase in capital adequacy ratio of HLF from 18.7 per cent in March 2022 to 22.5 per cent.

“Our Company in line with its growth plans has been evaluating various options to raise capital for its primary capital requirements. In line with this objective, we have had this infusion happening which takes care of medium-term growth requirements from a capital adequacy perspective. It augurs well with the scheme of arrangement with NXT Digital which is underway and progressing according to the schedule planned for. The listing of the merged entity’s equity shares will be subject to necessary regulatory and statutory approvals after following the due process,” said Sachin Pillai, Managing Director, and chief executive officer of HLF.

HLF primarily focuses on the vehicle finance business. The company also focusses on Mortgages business as well has a presence in affordable housing finance through its fully owned subsidiary Hinduja Housing Finance. On a consolidated basis for the quarter ended June 30, 2022, the company manages assets in excess of Rs 30,700 crore, which includes Rs.4,620 crore of housing finance assets. The company has a presence in 1,750 locations across the country with 9000 employees on board.