Ashok Leyland announces merger of Hinduja Leyland Finance, NXTDIGITAL

Ashok Leyland has announced the merger of a non-banking financial company in the business of financing commercial and personal vehicles - Hinduja Leyland Finance HLF with NXT DIGITAL.

According to an exchange filing, the merger will help to integrate business operations, ensure cash management, and formulate integrated operational and marketing strategies besides unlocking value for shareholders.

The proposed merger by the absorption of Hinduja Leyland into NXTDIGITAL is subject to approvals from Reserve Bank of India's Securities and Exchange Board of India SEBI National Company Law Tribunal NCLT and stock exchanges, along with their shareholders, creditors and other statutory and regulatory authorities.

After the merger, the shareholding pattern of NXTDIGITAL will change on the issuance of shares to HFL. If approved, the merger will cost NXTDIGITAL's 23 equity shares at face value of Rs 10 each and Hinduja Leyland Finance's 10 equity shares at a face value of Rs 10 each.

The date for the merger by Hinduja Leyland Finance Limited with and NXTDIGITAL Limited is to be April 01, 2022, or such other date as may be approved by the National Company Law Tribunal or any other appropriate authority. HLF is a subsidiary of Ashok Leyland and is engaged in the business of financing commercial and personal vehicles. Ashok Leyland shares were up 1.27 per cent on the BSE and trading at 151.35 apiece at the time of writing this story.