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Everstone puts more money in Hinduja Leyland Finance via rights issue

25 January, 2017

Hinduja Leyland Finance Ltd, the non-banking financial company (NBFC) owned by vehicle manufacturer Ashok Leyland, has raised Rs 280 crore (around $41 million) through a rights issue to improve its capital adequacy ratio.

This comes as the vehicle finance NBFC has decided to delay its public listing due to the impact of the government’s demonetisation drive, Mint reported.    

While the company has raised funds via a rights issue, it continues to work towards an initial public offering (IPO), the report said, citing S Nagarajan, managing director of Hinduja Leyland Finance.

Existing investor Everstone Capital and parent company Ashok Leyland invested Rs 280 crore. Everstone was to part exit in the public issue but since it has put in money in the NBFC now, its part exit plans may change.

A spokesperson for Hinduja Leyland did not immediately respond to a request for comments. 

In March 2016, Hinduja Leyland filed draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) for a public listing. At that time, the firm said it plans to raise Rs 500 crore.

Everstone Capital, which had invested around Rs 200 crore for an undisclosed stake in the company in 2013, had plans to part exit during the IPO, as reported by VCCircle previously.  

In the financial year ended 31 March 2016, the firm’s assets under management (AUM) grew to Rs 10,001 crore from Rs 6,550 crore the previous year, an increase of 52.6%. It reported revenues from operations of Rs 1,145 crore, according to its annual report.   

Hinduja Leyland Finance is jointly owned by Ashok Leyland and other entities of the Hinduja Group which is a diversified business group with a record of growing business in several industries.

The company, which began operations in March 2010, provides financing for commercial and personal vehicles—including medium and heavy, light and small commercial vehicles, cars, three-wheelers and two-wheelers as well as used vehicles, according to its website.  

The company has presence in all Indian states, including Delhi NCR and two union territories covering over 1,500 locations, according to its annual report.

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Everstone puts more money in Hinduja Leyland Finance via rights issue

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