Ashok Leyland sells 20% stake in arm to Creador for $50 million
Upstox
1 min read • Updated: March 15, 2024, 6:36 PM
Summary
Ashok Leyland sells 20% stake in Hinduja Tech to South Asian PE firm to boost its engineering and R&D efforts in the sustainable mobility space.
Chennai-based Hinduja Tech Limited, a unit of commercial vehicle manufacturer Ashok Leyland, on Thursday said it signed an agreement to receive a $50 million investment from Malaysia-based private equity firm Creador in exchange for a 19.6% stake in the company.
Shares of Ashok Leyland, the flagship company of the Hinduja Group, fell about 2% to ₹161.00 on NSE in morning sessions.
This investment takes Hinduja Tech to a post-money equity value of $255 million (about ₹2,113 crore), and will be used to ramp up the company's R&D efforts in sustainable mobility services
Creador, which was founded by former Chrys Capital Partner Brahmal Vasudevan, mainly operates in South and South-East Asia.
In 2022, Hinduja Group also purchased UK-based engineering consultancy company Drive System and Design (DSD) for an undisclosed figure, expanding its eMobility services from development to production. Commenting on the Creador investment, CEO of Hinduja Tech, Kumar Prabhas reiterated Hinduja’s “ambitious growth plan in the sustainable engineering mobility segment.”
Ashok Leyland had earlier bought Nissan’s 38% stake in Hinduja Tech for ₹70 crore in 2021. Hinduja Tech Limited reported revenue from operations of ₹131.63 crores in the financial year ended March 31, 2023.