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Ashok Leyland’s financing arm to raise Rs 600-650 crore through IPO

21 Sep 2015 Evaluate

Hinduja Leyland Finance (HLF), the commercial vehicles financing subsidiary of Ashok Leyland, is planning to raise Rs 600-650 crore through an initial public offering (IPO).

The firm has hired five banks to manage the IPO process. The firm is planning to list on the stock markets by the second half of the next financial year. Private equity firm Everstone Group, which is an investor in the company, will make a partial exit through the IPO.

The IPO will help the company to strengthen its capital base and to expand its lending business, which has recently seen the addition of a new category of housing loans, said the third person mentioned above.

HLF was incorporated in 2008 as a non-deposit taking non-banking financial company with the Reserve Bank of India. It provides customized finance for utility vehicles, tractors, cars and two wheelers among other vehicles, focusing on the semi-urban and rural sector.

 

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