Hinduja Leyland Finance’s proposed IPO expected raise Rs 10-15 billion

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Chennai, Jul 19: The proposed IPO of Hinduja Leyland Finance, a non-banking finance company, is expected to raise around Rs 10-15 billion. The company plans to go public this year, said senior officials from Ashok Leyland, which owns a major chunk of Hinduja Leyland Finance.
“It (the IPO) will also help discover the pricing for us,” said an official from Ashok Leyland, which owns a major chunk of Hinduja Leyland Finance.
Addressing shareholders, Ashok Leyland Chairman Dheeraj Hinduja said the future for Hinduja Leyland Finance was bright and the company was planning for an IPO this year.
In 2017-18, Ashok Leyland increased its stake in Hinduja Leyland Finance Limited from 57.20 per cent to 61.85 per cent and invested Rs 4.94 billion, according to the company’s annual report.
The objective was to retain 51 per cent control of the company post-IPO in order to consolidate operations and grow.
In 2016, Hinduja Leyland Finance dropped its Rs 5-7 billion IPO plans due to several reasons, including the demonetisation of higher value notes by the Central government.
“Owing to the uncertainty in the economy on account of demonetisation, the IPO slated for Q3 last year was postponed,” the company had said in July 2017.
Reports said the revival of the IPO will also provide an exit route for Everstone Capital, which had invested Rs 2 billion in the company in 2013.