Ashok Leyland gains after divesting stakes in two subsidiaries

Ashok Leyland rose 1.15% to Rs 74.85 at 10:00 IST on BSE after the company divested its 48.5% stake in Ashok Leyland Wind Energy and 100% stake in Avia Ashok Leyland Motors s.r.o.

The announcement was made after trading hours yesterday, 30 March 2015.

Meanwhile, the BSE Sensex was up 89.69 points, or 0.34%, to 28,070.71.

On BSE, so far 6.29 lakh shares were traded in the counter, compared with an average volume of 22.35 lakh shares in the past one quarter.

The stock hit high of Rs 75.70 and low of Rs 74.40 so far during the day. The stock hit a record high of Rs 76.05 on 11 March 2015. The stock hit a 52-week low of Rs 21.80 on 5 May 2014.

The stock had outperformed the market over the past one month till 30 March 2015, gaining 6.09% compared with 4.72% decline in the Sensex. The scrip had also outperformed the market in past one quarter, jumping 43.55% as against Sensex's 2.09% rise.

The large-cap commercial vehicle manufacturer has an equity capital of Rs 284.59 crore. Face value per share is Re 1.

Ashok Leyland said that the company has divested 48.5% stake held in Ashok Leyland Wind Energy (ALWEL) to a buyer and all the relevant agreements to this effect have been signed and closing of the deal has been completed. Consequent to stake sale, the shareholding of the company in ALWEL has come down from 60% to 11.5% and hence ALWEL ceases to be a subsidiary of the company with immediate effect. As part of the transaction, the company has also sold its windmill assets on slump sale basis. The company has made a profit of Rs 6 crore in these transactions.

Separately, Ashok Leyland said that the company has divested its entire stake of 100% ownership interest held in Avia Ashok Leyland Motors s.r.o. to a strategic investor as part of restructuring of investment in subsidiaries. The relevant agreements to this effect have been signed and closing of the deal has been completed. Consequently, Avia Ashok Leyland Motors s.r.o. has ceased to be a wholly-owned subsidiary of the company with immediate effect. Sale of stake in Avia Ashok has resulted in the cash realisation of $10.96 million to the company.

Ashok Leyland reported net profit of Rs 32.09 crore in Q3 December 2014 compared with net loss of Rs 167.21 crore in Q3 December 2013.Total income rose 64% to Rs 3380.32 crore in Q3 December 2014 over Q3 December 2013.

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