Ashok Leyland, Hinduja Foundries stocks slump up to 20% on merger announcement
Reacting to the development, the stock of Ashok Leyland sank as much as 4.90 per cent to Rs 80.60, while the stock of Hinduja Foundries tanked a whopping 20 per cent to Rs 44 on the BSE.
- Sep 15, 2016,
- Updated Sep 15, 2016 4:04 PM IST
Shares of Ashok Leyland and Hinduja Foundries slumped up to 20 per cent following the announcement that the Board of automobile component firm Hinduja Foundries has given its nod to amalgamate the company with Ashok Leyland.
The deal, however, stands subject to regulatory and shareholders' approval of both the companies.
Reacting to the development, the stock of Ashok Leyland sank as much as 4.90 per cent to Rs 80.60, while the stock of Hinduja Foundries tanked a whopping 20 per cent to Rs 44 on the BSE.
Ashok Leyland settled the day 3.55 per cent higher, while Hinduja closed 19.93 per cent lower.
The Board also approved the exchange ratio on the amalgamation in which one hundred equity shares of Rs 10 each of Hinduja Foundries will get 40 shares at Rs one each fully paid of Ashok Leyland Ltd.
"One Thousand 2008 series GDRs of Hinduja Foundries Ltd will get 133 equity shares of Rs one each fully paid of Ashok Leyland," it said.
"One 2016 series GDRs of Hinduja Foundries Ltd will get 4,800 equity shares of Rs one each fully paid of Ashok Leyland Ltd," it said.
The proposed date of amalgamation is October one, 2016.
"We welcome Hinduja Foundries into the fold of Ashok Leyland. The amalgamation will result in operational efficiencies and help realise significant cost synergies," Hinduja Group company and heavy commercial vehicle maker, Ashok Leyland Ltd., Chief Executive Officer and Managing Director, Vinod K Dasari said.
"We are confident that the roll out of the best practices of Ashok Leyland will benefit Hinduja Foundries Ltd. While it is a critical supplier to Ashok Leyland Ltd, it will continue its focus to grow its relationships with other customers," he said.
"In fact the new arrangement will help in providing a wider range of solutions to them. There is so much more Hinduja Foundries can do under the new arrangement," Dasari said in the statement.
Shares of Ashok Leyland and Hinduja Foundries slumped up to 20 per cent following the announcement that the Board of automobile component firm Hinduja Foundries has given its nod to amalgamate the company with Ashok Leyland.
The deal, however, stands subject to regulatory and shareholders' approval of both the companies.
Reacting to the development, the stock of Ashok Leyland sank as much as 4.90 per cent to Rs 80.60, while the stock of Hinduja Foundries tanked a whopping 20 per cent to Rs 44 on the BSE.
Ashok Leyland settled the day 3.55 per cent higher, while Hinduja closed 19.93 per cent lower.
The Board also approved the exchange ratio on the amalgamation in which one hundred equity shares of Rs 10 each of Hinduja Foundries will get 40 shares at Rs one each fully paid of Ashok Leyland Ltd.
"One Thousand 2008 series GDRs of Hinduja Foundries Ltd will get 133 equity shares of Rs one each fully paid of Ashok Leyland," it said.
"One 2016 series GDRs of Hinduja Foundries Ltd will get 4,800 equity shares of Rs one each fully paid of Ashok Leyland Ltd," it said.
The proposed date of amalgamation is October one, 2016.
"We welcome Hinduja Foundries into the fold of Ashok Leyland. The amalgamation will result in operational efficiencies and help realise significant cost synergies," Hinduja Group company and heavy commercial vehicle maker, Ashok Leyland Ltd., Chief Executive Officer and Managing Director, Vinod K Dasari said.
"We are confident that the roll out of the best practices of Ashok Leyland will benefit Hinduja Foundries Ltd. While it is a critical supplier to Ashok Leyland Ltd, it will continue its focus to grow its relationships with other customers," he said.
"In fact the new arrangement will help in providing a wider range of solutions to them. There is so much more Hinduja Foundries can do under the new arrangement," Dasari said in the statement.