Ashok Leyland was down 0.73% to Rs 87.85 at 10:00 IST on BSE, with the stock witnessing intraday volatility after the company announced a restructuring agreement with Nissan Motor Co.
The announcement was made after market hours yesterday, 7 September 2016.Meanwhile, the S&P BSE Sensex was down 12.69 points or 0.04% at 28,913.67.
On BSE, so far 4.04 lakh shares were traded in the counter as against average daily volume of 12.87 lakh shares in the past two weeks. The stock was volatile. The stock lost as much as 1.01% at the day's low of Rs 87.60 so far during the day. The stock rose as much as 1.29% at the day's high of Rs 89.65 so far during the day. The stock had hit a 52-week low of Rs 78.05 on 11 February 2016. The stock had hit a record high of Rs 112.80 on 13 April 2016. The stock had underperformed the market over the past one month till 7 September 2016, advancing 0.51% compared with 3.02% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 16.51% as against Sensex's 7.1% rise.
The large-cap company has equity capital of Rs 284.59 crore. Face value per share is Rs 1.
Ashok Leyland announced a restructuring agreement with Nissan Motor Co. that will enable both companies to enter into a new phase in their business interaction. Nissan has agreed to sell to Ashok Leyland all of Nissan's shares in three joint venture (JV) companies that were formed in 2008. These JVs focus on technology development, and manufacturing of powertrains and vehicles. Under the agreement, these JVs will become wholly-owned Ashok Leyland subsidiaries, upon receipt of all necessary approvals from the regulatory authorities in India. The process is expected to be concluded later this year, Ashok Leyland said.
Ashok Leyland's Managing Director Vinod Dasari said that the company has decided to acquire Nissan's stake in the three JV companies, and this will help Ashok Leyland's efforts to concentrate on its core business initiatives and its customers. Ashok Leyland will continue its relationship with Nissan under the new arrangement, Dasari added.
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Ashok Leyland's net profit jumped 101.2% to Rs 290.78 crore on 10.6% growth in net sales to Rs 4175.79 crore in Q1 June 2016 over Q1 June 2015.
Ashok Leyland is one of the leading manufacturers of medium and heavy commercial vehicles in India.
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