Ashok Leyland has announced an investment of up to ₹375 crore in its UK subsidiary, Optare Plc. The investment, not exceeding GBP 30 million, will be made in one or more tranches as equity. Optare Plc is engaged in the manufacture and sale of buses and commercial vehicles.
The acquisition is classified as a related party transaction, with Hinduja Automotive Limited, the promoter of Ashok Leyland, holding a 6.52% stake in Optare Plc. The investment decision was supported by a valuation report from an independent valuer, ensuring it is conducted at arm’s length.
Optare Plc, which is the holding company for Ashok Leyland’s electric vehicle initiatives under Switch Mobility Limited and Switch Mobility Automotive Limited, reported a consolidated revenue of ₹1,232.59 crore for the fiscal year ending March 31, 2025. The company’s turnover for the previous fiscal years was ₹707.30 crore in FY 2023-24 and ₹229.72 crore in FY 2022-23.
The investment aims to support the repayment of loans and other business requirements. The acquisition process is expected to be completed by March 31, 2026. Upon completion, Ashok Leyland’s shareholding in Optare Plc will increase slightly from 93% to 93.28%.
Optare Plc was incorporated on January 23, 2008, and it plays a significant role in Ashok Leyland’s strategy to expand its electric vehicle footprint in the UK and beyond.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).