Share

Ashok Leyland has approved an investment of up to GBP 30 million (approximately Rs 375 crore) in its subsidiary, Optare Plc, through equity infusion in one or more tranches. The company disclosed that the investment was approved under Regulation 30 of SEBI Listing Regulations.

Purpose of Investment

The stated purpose of the investment is to support repayment of loans and meet other business requirements of the subsidiary.

Shareholding Impact

Ashok Leyland currently holds 93% stake in Optare Plc. Following the investment, its shareholding is expected to increase marginally to 93.28%.

Transaction Structure

The investment will be made in cash. The company noted that the transaction qualifies as a related party transaction. Hinduja Automotive Limited, part of the promoter group, holds 6.52% stake in Optare Plc. The company stated that the investment is based on a valuation report from an independent valuer.

About Optare Plc

Optare Plc, based in the United Kingdom, is engaged in the manufacture and sale of buses and commercial vehicles. It also serves as the holding company for the group’s electric vehicle initiatives, including Switch Mobility Limited (UK) and Switch Mobility Automotive Limited. The company was incorporated on January 23, 2008.

Financial Performance

According to the annexure (page 2), Optare Plc reported consolidated revenue of ₹1,232.59 crore for FY 2024–25. Previous years’ revenues were Rs 707.30 crore in FY 2023–24 and ₹229.72 crore in FY 2022–23.