Ashok Leyland, the second-largest commercial vehicle maker in India, has raised Rs 210 crore (around $35 million) by selling the residual section of one of its residential properties at Chennai, as part of its strategy to divest its non-core assets, according to a stock market disclosure.
“With this transaction, the sale of the entire property stands completed, for a total consideration of Rs 210 crore, the proceeds of which has since been received by the company,” Hinduja group’s flagship company Ashok Leyland said.
Ashok Leyland has been looking to divest its non-core assets to cut its debt. The company recently mobilised Rs 666 crore (around $110 million) through a qualified institutional placement (QIP) to pay off its debt.
The vehicle maker is looking to bring down its debt-to-equity ratio from 1.44 times in fiscal 2013-14 to 1.1 by the end of this year. The company plans to reduce its debt by Rs 700 crore more to bring it down to around Rs 3,800 crore from Rs 4,500 crore.
Chennai-headquartered Ashok Leyland manufactures and sells commercial vehicles in India and internationally, and counts Singapore’s sovereign wealth fund Temasek as one of its institutional shareholders.
Shares of the company were trading at Rs 37.50 at 12:30 PM (IST), down 0.79 per cent from their previous close on the Bombay Stock Exchange.
(Edited by Joby Puthuparampil Johnson)