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Ashok Leyland arm allots CCPS to Gandaraditya Chola

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Last Updated : Apr 16 2024 | 1:04 PM IST

Ashok Leyland announced that its subsidiary, Hinduja Tech (HTL) had approved allotment of compulsorily convertible preference shares (CCPS) and equity shares to Gandaraditya Chola.

The company has issued 5,12,12,923 series A, 0.005% compulsorily convertible preference shares (CCPS) at Rs 76.55 per share totalling to Rs 392.03 crore with voting rights and 10 equity shares at face value of Rs 10 per share and premium of Rs 66.55 per share totalling to Rs 765.50.

The investment proceeds would be utilized by HTL for merger & acquisition activity, funding for its subsidiaries, retirement of debt, redemption of preference shares and for general corporate purposes.

However, consequent to the issue of CCPS by HTL to Gandaraditya Chola, Companys total shareholding (voting rights) in HTL stands reduced to 58.75% from 73.03%, assuming maximum conversion ratio of 1.

Ashok Leyland is engaged in manufacture and sale of a wide range of commercial vehicles. The company also manufactures engines for industrial and marine applications, forgings and castings.

The companys consolidated net profit jumped 60.51% to Rs 580 crore on 2.69% increase in revenue from operations to Rs 9,273 crore in Q3 FY24 over Q3 FY23.

The scrip rose 0.34% to Rs 176.10 on the BSE.

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First Published: Apr 16 2024 | 12:36 PM IST

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