Ashok Leyland to fully acquire OHM India, to infuse Rs 300 crore

Ashok Leyland will enter into a stock purchase agreement to acquire 10,000 equity shares of Rs 10/- each from OHM UK, it said in its filing.

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Ashok Leyland said in its stock exchange filing on August 14 that its board of directors approved acquisition of shares of OHM Global Mobility Private Limited (OHM India) from OHM International Mobility Limited. The Hinduja group flagship firm said it will invest up to Rs 300 crore into OHM India.

The board agreed to infuse in one or more tranches for UHM India to meet the business requirements of OHM India, Ashok Leyland said in its exchange filing.

OHM Global Mobility Private Limited (OHM India), is a wholly owned Subsidiary of OHM International Mobility Limited UK (OHM UK). The statement said the promoter, M/s. Hinduja Automotive Ltd., directly holds 20% and indirectly through other subsidiaries holds 43.23% in OHM UK from which the shares of the target company are being acquired.

OHM India is in the business of transportation, logistics operation and management, and e-Mobility as a Service (eMaaS).

The proposed acquisition is part of Ashok Leyland’s EV strategy to engage in the business of eMaaS. This would likely result in enhancing the operational efficiency and synergy, the Commercial vehicles (CV) maker said.

The indicative time period for completion of the acquisition is within 1 month, it added. Ashok Leyland in its filing said it will execute a Share Purchase Agreement (SPA) and other connected agreements for the acquisition, post which the share transfer will be completed.

Ashok Leyland will enter into a stock purchase agreement to acquire 10,000 equity shares of Rs 10/- each from OHM UK, it said in its filing. Post acquisition from OHM UK, Ashok Leyland said OHM India will become its wholly owned subsidiary.

As per the statement, the acquisition value matches the assessment conducted by an independent valuer. OHM India, established on March 8, 2021, with its registered office in Chennai, in India for the purpose of engaging in eMaaS business, has not initiated its operations as of now, the statement said.

Ashok Leyland was in the news recently when it won an order worth at Rs 800 crore in the defence sector. The contracts awarded also include the procurement of the Field Artillery Tractor (FAT 4x4) and the Gun Towing Vehicle (GTV 6x6).

On July 21, Ashok Leyland reported a 747 percent YoY jump in its standalone net profit for the quarter ended June 2023 to Rs 576.42 crore, aided by a deferred tax credit, higher volumes, softening commodity prices, and cost cuts.

In the trading session on August 14, the scrip settled at Rs 186.90 apiece at the BSE, which was 0.11 percent lower as against the previous day's close.