Ashok Leyland gets nod to amalgamate Hinduja Foundries with itself

Ashok Leyland has received its board’s approval for its proposal of amalgamating Hinduja Foundries, a Hinduja Group company, with itself, subject to various regulatory approvals and approval of shareholders of both the companies. Hinduja Foundries is in the business of grey iron castings and supply of automotive components.

The board of directors also approved (subject to regulatory approvals) the exchange ratio in the following manner: 100 equity shares of Rs 10 each fully paid of Hinduja Foundries will get 40 equity shares of Rs 1 each fully paid of Ashok Leyland.

Further, 1,000 of Hinduja Foundries’ 2008 series GDRs will get 133 equity shares of Rs 1 each fully paid of Ashok Leyland. Also, one 2016 series GDRs of Hinduja Foundries will get 4,800 equity shares of Rs 1 each fully paid of Ashok Leyland. The appointed date for the proposed amalgamation is October 1, 2016.

Ashok Leyland, the Hinduja Group flagship company in India, is engaged in the manufacturing of commercial vehicles and related components. The company’s products include buses, trucks, engines, defense and special vehicles.