Ashok Leyland soared 8.38% to Rs 135.75 after the US-based firm, Dana Incorporated declared its plan to invest $18 million for 1% stake in Switch Mobility, an Electrified Commercial Vehicles company and a subsidiary of Ashok Leyland.
Switch Mobility, an Electrified Commercial Vehicles (ECV) company and a subsidiary of Ashok Leyland, the Indian flagship of the Hinduja Group intimated a strategic agreement with Dana Incorporated (Dana), a US-based firm engaged in drivetrain and e-propulsion systems, to make a minority investment in Switch Mobility.
Under the terms of the agreement, Dana Incorporated will make a strategic investment in Switch Mobility and will also be a preferred supplier of electric drivetrain components for the company's e-bus and electric vehicle (EV) commercial vehicle offering - including e-Axles, gearboxes, motors, inverters, software and controls, and electronics cooling.
Dheeraj Hinduja, the chairman of Switch Mobility, commented: "Dana has a long-standing relationship with Ashok Leyland. This now extends to Switch Mobility and we are happy to have Dana invest in the company. With this agreement, Dana not only becomes an important supplier to Switch but will also invest $18 million in the company, representing an approximate 1% stake. The investment exemplifies the confidence placed by Dana in Switch and will help to strengthen the relationship further."
"At Switch Mobility, we have ambitious plans to lead zero carbon mobility globally through positioning innovative products and solutions with best in class TCO. I believe the partnership with Dana will accelerate the process, building on our strong relationship of many years," Mr Hinduja added.
The acquisition news was declared before market hours today, 30 July 2021. Switch Mobility combines the electrical commercial vehicle operations of Ashok Leyland in India and Optare in UK to secure a leading global position in net zero carbon buses and light commercial vehicles.
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The company recorded net profit of Rs 377.13 crore in Q4 FY21 as compared to a net profit of Rs 57.78 crore in Q4 FY20. Net sales jumped 60.3% to Rs 8,114.66 crore in Q4 FY21 over Rs 5,062.15 crore in Q4 FY20.
Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.
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