Ashok Leyland Sells Remaining Stake in IndusInd Bank
Published On Mar 29, 2016
Ashok Leyland has divested shares of IndusInd Bank Ltd worth INR 299 crore. Back in September 2015, the firm had sold 1.8 million shares of the bank. The firm has been disposing of numerous unresponsive joint ventures, and has also steadily slashed off shares of non-core assets over the past year. Some time back, the brand had announced that it would be reviewing its entire business landscape, and streamlining its focus on core business entities. Just recently, Ashok Leyland had terminated many of its collaborations, including a roughened JV with Nissan, and another with American tractor-firm John Deere.
It also sold its stake in a US-based engineering firm, Defiance Testing & Engineering, along with many lands in its home city of Chennai. It also disposed of its 48.5 percent stake in Ashok Leyland Wind Energy Limited (ALWEL), which it also considered a non-core entity. Apart from all of this, reports claim that the brand had also sold some of its lands in Chennai.
The company is thought to be suffering from an excessive debt, a piece of information which has been surfacing in reports over the past year. All of these moves are viewed as strategic measure which the firm has been taking over the past year in its pursuit of lightening the debt amount without compromising its business foothold.
On March 31, 2015, the company's balance-sheet reflected 50,63,923 shares which it possessed of IndusInd Bank. Of this, the company disposed of 1.8 million shares in 2015, garnering a profit of around INR 300 crore. The remaining 3.2 million equity shares are now being sold for INR 915.96 per share, fetching it a staggering sum of INR 298.96 crore.