Ashok Leyland's shareholding in UK-based Optare Plc increases to 92.59%

In November last year, Ashok Leyland announced that it would invest Rs 1,200 crore in its electric vehicle arm Switch Mobility, through Optare Plc

Ashok Leyland

Raghav Aggarwal New Delhi

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Ashok Leyland's shareholding in UK-based commercial vehicle maker Optare Plc, which is also the holding company of Switch Mobility Ltd, rose to 92.59 per cent from 92.19 per cent. This comes after the company invested Rs 536.73 crore in the second tranche via equity shares in Optare, it told the exchanges on Tuesday. 

In November last year, Ashok Leyland announced that it would invest Rs 1,200 crore in its electric vehicle arm, Switch Mobility, through Optare Plc. In December, it had invested Rs 662.5 crore in the first tranche. On Tuesday, the company said it has completed the investment in the second tranche.

"We wish to inform you that the Company had invested a sum of GBP 50679500 (approximately Rs 536.73 crore) in Optare Plc. UK by way of Equity shares in the second tranche. Consequent to the allotment by the Board of Directors of Optare Plc., the shareholding of the company in Optare Plc. has increased from 92.19 per cent to 92.59 per cent," it said in a regulatory filing on Tuesday. 

The shares in return for the investment were allotted to Ashok Leyland on February 12. 

The promoter of Ashok Leyland, Hinduja Automotive Ltd, also holds a 6.9 per cent stake in Optare Plc. 

The company had said that Rs 1,200 crore will be used on capital expenditure, research & development and meeting operational requirements of Optare Plc and Switch Mobility - both in the UK and India.

Optare Plc is into manufacturing and sale of commercial vehicles. It is the holding company of the electric vehicle initiatives of the company, including Switch Mobility Limited, UK and Switch Mobility Automotive Limited.

On Tuesday morning, the shares of Ashok Leyland were trading flat at Rs 171.45 apiece on the BSE.  

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First Published: Feb 13 2024 | 11:20 AM IST

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