Ashok Leyland gains 2% on bus orders from STU; acquires additional stake in Ashley Aviation

Ashok Leyland | Board approved the introduction of Voluntary Retirement Scheme (VRS) for all eligible employees of the company. Company has incorporated a wholly owned subsidiary 'Vishwa Buses and Coaches Limited'.

Shares of Ashok Leyland gained 2.7 percent in the early trade on Thursday as company bagged an order to provide buses from state transports.

The company bagged orders from IRT (Institute of Road Transport, Chennai), UPSRTC (Uttar Pradesh State Roadways Transport Corporation) and CTU (Chandigarh Transport Undertaking) for 2580 buses.

These orders, are among the largest from STU's for a single OEM. All these buses can be delivered before March 2019.

Vinod K. Dasari, Managing Director, Ashok Leyland said, "We are very happy to receive the confirmation of these orders from State Transport Undertakings. Our ability to bring value, combined with our superior technology and innovation will help us maintain our leadership position in buses in India."

The company has acquired additional 5,00,010 shares of Rs 10 each constituting 12.50 percent in the paid-up share capital of Ashley Aviation (AAL) for Rs 25,50,051. Post the said acquisition, the company's shareholding in AAL stands increased to 88.75 percent.

The company has obtained the approval of the Ministry of Civil Aviation and proposes to acquire the balance equity shares held by individuals in AAL before March 31, 2019.

At 09:17 hrs Ashok Leyland was quoting at Rs 95.90, up Rs 1.50, or 1.59 percent on the BSE.

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