Ashok Leyland Falls On Hinduja Foundries Merger Approval
Hinduja Foundries gives nod to merge with Ashok Leyland
- Hinduja Foundries and Ashok Leyland boards approve merger
- Shareholders with 100 equity shares of Rs 10 each of Hinduja Foundries will get 40 shares at Rs 1 each of Ashok Leyland
- Hinduja Foundaries’ GDR holders will also get Ashok Leyland shares
- Ashok Leyland stock falls 3.6 percent to Rs 81.5 as of 9:20 a.m.
Hinduja Foundries stock falls 20 percent to Rs 44 as of 9:20 a.m.
The board of automobile component firm Hinduja Foundries Ltd. has given its nod for amalgamating the company with heavy commercial vehicle maker Ashok Leyland Ltd. subject to regulatory and shareholders approval of both the companies.
At the meeting held today, the board of directors of the company unanimously approved the proposal of amalgamating Hinduja Foundries Ltd, a Hinduja Group company with Ashok Leyland subject to various regulatory and shareholders approval of both the companies.Hinduja Foundries Statement
The board also approved the exchange ratio on the amalgamation in which hundred equity shares of Rs 10 each of Hinduja Foundries will get 40 shares at Rs 1 each fully paid of Ashok Leyland.
“One Thousand 2008 series GDRs of Hinduja Foundries will get 133 equity shares of Rs 1 each fully paid of Ashok Leyland,” it said.
“One 2016 series GDRs of Hinduja Foundries will get 4,800 equity shares of Rs 1 each fully paid of Ashok Leyland Ltd,” it said.
The proposed date of amalgamation is October 1, 2016.
“We welcome Hinduja Foundries into the fold of Ashok Leyland. The amalgamation will result in operational efficiencies and help realise significant cost synergies,” Hinduja Group company and heavy commercial vehicle maker, Ashok Leyland, Chief Executive Officer and Managing Director, Vinod K Dasari said.
We are confident that the roll out of the best practices of Ashok Leyland will benefit Hinduja Foundries. While it is a critical supplier to Ashok Leyland, it will continue its focus to grow its relationships with other customers. In fact the new arrangement will help in providing a wider range of solutions to them. There is so much more Hinduja Foundries can do under the new arrangement.Vinod K Dasari, Chief Executive Officer & Managing Director, Ashok Leyland