Hinduja Leyland Finance Ltd (HLFL), the non-bank financier and a subsidiary of Ashok Leyland, is set to be merged with Nxtdigital (NDL), the media vertical of the Hinduja group.
In a late evening announcement on Wednesday, NDL said its board has given an in-principle approval for the merger, subject to all statutory or regulatory approvals and the clearance of the shareholders.
After its decision to transfer the digital, media and communications business undertaking to Hinduja Global Solutions in January this year, NDL has been evaluating various proposals to pursue high-growth oriented business opportunities that could bring in incremental value.
If all approvals for the merger come in, the non-banking finance arm of Ashok Leyland could thus become a listed entity.
The promoters hold around 51.54 per cent of NDL with the rest being held by the public.
NDL said it will appoint independent valuers to carry out the valuation exercise and submit a report, including a share exchange ratio.
If all approvals for the merger are received, Ashok Leyland will hold a partial stake in NDL.
Shares of Nxtdigital (NDL) on Thursday surged by over 8 per cent after its board accorded the in-principle approval for the merger. The shares settled at Rs 451.75 — a gain of 8.37 per cent, or Rs 34.90.
