Ashok Leyland, the country's second largest commercial vehicle manufacturer, said on Wednesday that it has acquired 27.25 per cent additional stake in Ashley Aviation, increasing its shareholding in the aviation firm to 76.25 per cent.
"The company has acquired 10,89,985 shares of Rs 10 each constituting 27.25 per cent in the paid-up share capital of Ashley Aviation Limited (AAL) at a price of Rs 5.10 per share," Ashok Leyland said in a filing to the Bombay Stock Exchange.
Following the acquisition, the company's shareholding in AAL will increase from 49 per cent to 76.25 per cent and thus AAL become a subsidiary of the company, it said. The Chennai-based commercial vehicle manufacturer paid Rs 55.59 lakh to acquire the additional stake in the company.
The company has also obtained the approval of the Ministry of Civil Aviation in this regard, it informed the exchange.
The Hinduja group flagship firm proposes to acquire the balance equity shares held by individuals in AAL before March 31, 2019.
AAL, engaged in the business of aviation sector, has a revenue of Rs 9.62 crore as on March 31, 2018.
Earlier this morning, the company released sales figures for the month of December 2018. The auto major reported a decline of 20 per cent in its total sales at 15,493 units in December 2018 as compared to 19,251 units dispatched in the same month a year ago, dented by weak sale numbers of M&HCV segment.
The sales of M&HCVs fall sharply by 29 per cent year-on-year to 11,295 units in December 2018. The LCV segment, however, reported a substantial growth of 27 per cent at 4,198 units against 3,303 units in December 2017.
Weighed down by weak sales number, shares of Ashok Leyland tumbled 2.44 per cent to close at Rs 100.05 apiece on the BSE.
Edited by Chitranjan Kumar