The Hinduja group firm said it has "no interest in this transaction", and the issuance of the corporate guarantee is only to "cover the lenders/banking facilities".
Automotive manufacturer Ashok Leyland on August 18 announced that it would be issuing corporate guarantee cover, amounting to Rs 870 crore, to cover the lending facilities of two of its UK-based subsidiaries — Optare Plc and Switch Mobility Ltd.
In a regulatory filing, Ashok Leyland said the promoter or promoter group has "no interest in this transaction", and the issuance of the corporate guarantee is only to "cover the lenders/banking facilities".
Per the exchange filing, the total amount of the guarantee is "GBP 82.10 million", which is equivalent to around Rs 870 crore.
The announcement from Ashok Leyland came four days after its board of directors approved acquisition of shares of OHM Global Mobility Private Limited (OHM India) from OHM International Mobility. The Hinduja group flagship firm said it will invest up to Rs 300 crore into OHM India.
Ashok Leyland was also in the news recently when it won an order worth at Rs 800 crore in the defence sector. The contracts awarded also include the procurement of the Field Artillery Tractor (FAT 4x4) and the Gun Towing Vehicle (GTV 6x6).
On July 21, Ashok Leyland reported a 747 percent YoY jump in its standalone net profit for the quarter ended June 2023 to Rs 576.42 crore, aided by a deferred tax credit, higher volumes, softening commodity prices, and cost cuts.
In the trading session on August 18, the scrip settled at Rs 186.35 apiece on the BSE, which was 1.38 percent lower as against the previous day's close.
Source: https://shorturl.at/abdh4
