Although Hinduja group flagship Ashok Leyland has been divesting stake in group companies as part of its effort to reduce its debt burden, it is not looking at share dilution in group companies like Hinduja Leyland Finance and Defiance Technology immediately. According to Ashok Leyland MD Vinod Dasari, while the company has indicated there will be stake dilution in both Hinduja Leyland Finance and Defiance Technology as well, that wont be anytime soon.
The commercial vehicles major, which launched its Captain 2523 Tipper on Monday, plans to use its recent stake offloads in group companies to help reduce overall debt by Rs 1000 crore by March-end. Ashok Leyland has offloaded some of its stake in IndusInd Bank and sold Defiance Testing to US-based Exova in the last couple of months.
These were investments in group companies and divesting some of it will help reduce our debt, said Dasari. The sale of IndusInd Bank shares got us around $20 million-odd. Our debt as of August 2013 was Rs 6,600 crore and we are targeting to reducing that by Rs 1,000 crore by the end of March 2014.