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HLFL files for IPO, PE Everstone may partially exit

Hinduja Leyland Finance Limited (HLFL), an arm of Ashok Leyland and a Hinduja group NBFC engaged in vehicle financing, is entering the capital market through an initial public offer (IPO) to raise Rs 500 crore with a face value of `10 each through the book building process.

Hinduja Leyland Finance Limited (HLFL), an arm of Ashok Leyland and a Hinduja group NBFC engaged in vehicle financing, is entering the capital market through an initial public offer (IPO) to raise Rs 500 crore with a face value of `10 each through the book building process. A pre-offer placement of up to 2.6 crore equity shares for an aggregate amount of ` 200 crore is also being considered with its IPO, the company said in its draft papers. With this, the company hopes to raise around `700 crore in total.

The IPO will consist of an offer for sale of shares by private equity fund Everstone Capital. Everstone, which picked up a 15% stake way back in 2013 in the company for `200 crore, will partially exit (around 50% of its holding) through sale of its shares. The Hinduja group companies currently hold around 86% in HLFL with Ashok Leyland alone is holding around 57%.

The proposed fund raising is for working capital requirements which would help the firm increase its business further. As of March 31, 2015, the company had ended an asset base of `6,550 crore and made a profit of little over `110 crore, the sources added. The company hopes to garner `100 crore through housing arm.

Hinduja Leyland Finance, a non-banking finance company (NBFC), provides customised finance to utility vehicles, tractors, cars, two wheeler and other commercial vehicles, focusing on the semi-urban and rural sector. HLFL was incorporated in the year 2008 and is registered as a non-deposit taking NBFC with Reserve Bank of India. It is one of India’s leading non-banking finance companies spread across 20 states pan-India with 1,500 locations. Through a vast network of branches

According to the draft papers, the company reported revenue of `821.79 crore in 2014-15 as compared to `641.5 crore in the previous year and made a net profit was at `110.9 crore as against `78 crore in the previous year.

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First published on: 01-04-2016 at 01:15 IST
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