Hinduja Leyland Finance files DRHP for proposed IPO

Comapny plans to raise around Rs 700 cr; Everstone may partially exit

Hinduja Leyland Finance, a subsidiary of Ashok Leyland, on Wednesday filed the red herring prospectus for its proposed IPO to raise Rs 700 crore, said S Nagarajan, managing director of Hinduja Leyland Finance.

Private equity firm Everstone, which has 13.4 per cent stake in the company, would make a partial exit through the IPO, company sources said. The PE firm had invested around Rs 200 crore in the company in 2013. There is an option for Everstone to sell 50 per cent of its stake in the IPO, the sources added.

Axis Capital, ICICI Securities, SBI Capital Markets and Yes Securities are the book running lead managers.

According to Nagarajan, the fund-raising is to support the company’s growth. He, however, did not give any time frame for the proposed IPO, saying it will depend on market conditions.

Currently, the company's assets under management stand at around Rs 8,500 crore, up from Rs 6,500 crore last year.

The company said it would offer Hinduja Leyland Finance’s shares with face value of Rs 10 each, consisting of a fresh issue of equity shares aggregating Rs 500 crore, and an offer for sale of up to 26,608,810 equity shares.

Hinduja Leyland Finance is a non-deposit taking non-banking financial company, incorporated in 2008. It has branches in 20 states in the country. Through its vast network of branches, it provides customised finance for the widest range of utility vehicles, tractors, cars, two-wheelers and other commercial vehicles, focusing on the semi-urban and rural sectors.