Creador to pick up 19.6% stake in Hinduja Tech for $50 million

Hinduja Tech CEO Kumar Prabhas said HT has developed tremendous domain expertise over the last 10 years with a number of Global OEMs (Original Equipment Manufacturers) as its customers.

Hinduja Tech Ltd, an arm of commercial vehicle maker Ashok Leyland, on Thursday said private equity firm Creador will acquire 19.6 per cent of it for USD 50 million (nearly Rs 415 crore).

The company has signed a definitive agreement with Creador for the latter to invest USD 50 million in it, acquiring 19.6 per cent shareholding, subject to completion of customary closing conditions, Hinduja Tech (HT) said in a statement. This investment places Hinduja Tech, a mobility-focused global engineering R&D services firm, at a post-money equity value of USD 255 million (over Rs 2,110 crore), it added.

"The infusion of capital will allow Hinduja Tech to augment its existing capabilities in research and development through organic and inorganic means, enhance its global footprint and expand its state-of-the-art labs to gain momentum in its journey towards emerging as a global leader in sustainable engineering mobility services," the statement said. Hinduja Tech CEO Kumar Prabhas said HT has developed tremendous domain expertise over the last 10 years with a number of Global OEMs (Original Equipment Manufacturers) as its customers.

"We have an ambitious growth plan in the sustainable engineering mobility segment," he said, adding, that the investment by Creador would allow HT to accelerate its global growth plans. "Creador is a private equity firm focused on long-term investments in growth-oriented businesses in Southeast Asia and India. HT has established itself as a key player in the mobility ER&D industry with marquee customers across the globe," Creador Director Anish Kedia said.

"With its deep capabilities across engineering, powertrain and electronics, we believe HT is well poised towards creating sustainable and profitable solutions for the future of mobility," Kedia added. In FY 2023, Hinduja Tech acquired Drive System Design, a UK & US-based company, specialising in e-powertrain design.