Ashok Leyland Limited — Important, 12-02-2025: General Updates

The Board of Directors has approved significant investments in two entities. A capital injection of up to GBP 45 million (approximately Rs. 500 Cr) into Optare Plc, a UK-based subsidiary specializing in the manufacture of commercial vehicles, aims to bolster its capital position for Capex and debt reduction, with anticipated completion by March 31, 2025. Optare reported consolidated revenue of Rs. 707.30 Cr for FY 2023-24.

Additionally, the Board has greenlighted an investment of up to Rs. 200 Cr in Hinduja Leyland Finance Limited (HLFL), a non-banking financial services subsidiary, intended to improve its debt/equity and capital adequacy ratios, also expected to conclude by the fiscal year-end. HLFL has demonstrated strong performance with FY 2023-24 revenue of Rs. 3,452.81 Cr, marking a notable increase from previous years. These moves highlight strategic initiatives with positive implications for Ashok Leyland’s growth trajectory.