Creador Bought ~19.6% Stake in Hinduja Tech: Shares of Ashok Leyland in Focus

On 15 March 2024, the shares of Ashok Leyland Limited are in focus after the sale of a minority stake of ~19.6% in Hinduja Tech (a subsidiary of Ashok Leyland) to Creador, a renowned private equity firm. The deal sees Creador investing $50 million in Hinduja Tech. The share price of Ashok Leyland opened at ₹164.70 and touched the day of ₹164.90 at 9:35 AM. Ashok Leyland has delivered a return of ~16.79% in the past one year.

A Strategic Alliance

This partnership between Hinduja Tech and Creador is significant for several reasons. Creador, with its focus on Southeast Asia and India, brings valuable expertise and connections to the table. This investment could propel Hinduja Tech’s expansion plans in these key markets, which are witnessing a boom in the mobility sector.

For Creador, the alliance presents an opportunity to tap into Hinduja Tech’s well-established presence in the engineering R&D domain, particularly within the mobility space. Hinduja Tech’s strong track record in developing innovative solutions positions it for continued success, making it an attractive investment for Creador. As a result of this investment, Hinduja Tech is sitting at a post-money equity value of $255 million.

Boost for Hinduja Tech

This $50 million infusion provides Hinduja Tech with fresh capital to fuel its growth initiatives. The company can leverage these funds for various purposes, such as:

• Product development: Investing in cutting-edge technologies and expanding its engineering capabilities to cater to the evolving needs of the mobility sector.
• Geographic expansion: Strengthening its presence in Southeast Asia and other strategic markets to capitalise on regional growth opportunities.

About Hinduja Tech Ltd

Hinduja Tech (HT) is a part of the multi-billion-dollar global business conglomerate, Hinduja Group, and a subsidiary of Ashok Leyland Ltd. The company provides product and digital engineering solutions, and its services cater to the disruptive mobility segment, especially in the Electric and Autonomous space. Hinduja Tech acquired Drive System Design, a UK & US-based company specialising in e-powertrain design, in FY23.

About Ashok Leyland Ltd

Ashok Leyland is the flagship company of the Hinduja group, and it has a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.