Ashok Leyland Jumps 5% on Buzz of Financing Arm Listing

Ashok Leyland shares jumped as much as 5 per cent on Tuesday after Reuters reported that the commercial vehicles maker is planning to list its financing arm to raise up to Rs 650 crore.

Ashok Leyland has appointed five bankers to to manage the issue of Hinduja Leyland Finance, Reuters said citing sources. India's second largest commercial vehicle maker is seeking a valuation of Rs 4,000 crore for its financing arm, the report said.

Hinduja Leyland Finance provides loans to buy utility vehicles, tractors, cars and two wheelers in India's semi-urban and rural areas.

Ashok Leyland shares closed 0.74 per cent higher at Rs 88.8 apiece compared to 2.01 per cent fall in the broader Nifty.
(With inputs from Reuters)