Ashok Leyland Limited has informed the Exchange about Acquisition
ASHOKLEY · price
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Ashok Leyland's board has approved investing up to GBP 30 million (approximately ₹375 Crores) in its UK subsidiary Optare Plc. as equity, in one or more tranches. The funds will be used by Optare for loan repayment and other business needs. Optare is the holding company of Ashok Leyland's electric vehicle arm Switch Mobility and reported consolidated revenue of ₹1,232.59 Crores in FY25, up sharply from ₹707.30 Crores in FY24. Ashok Leyland currently holds 93% in Optare, which will rise to 93.28% post-allotment. The investment is a related party transaction since promoter Hinduja Automotive holds 6.52% in Optare, and is based on an independent valuation. Completion is targeted by March 31, 2026.
This is a capital infusion into an existing subsidiary rather than a fresh acquisition, so there is no open offer trigger for shareholders. The increasing stake signals continued commitment to the EV business through Switch Mobility, though the marginal increase (0.28%) means limited EPS impact. Shareholders should watch Optare's financial performance, as further support may be needed if losses persist.