Ashok Leyland Ltd, India’s second-largest commercial vehicle maker, plans to list its financing arm in the second half of next year and could raise up to 6.5 billion rupees ($99 million), a source familiar with the matter said.
Ashok Leyland, part of the Hinduja Group, is seeking a valuation of 40 billion rupees for Hinduja Leyland Finance Ltd and has appointed five bankers to manage the issue, the source told Reuters.
The source declined to be named as the plan is not yet public.
Hinduja Leyland Finance provides loans to buy utility vehicles, tractors, cars and two wheelers in India’s semi-urban and rural areas.
Private equity firm Everstone Group, which has a 15 percent stake in the company, would make a partial exit through the IPO, the Mint newspaper reported on Monday. (http://bit.ly/1MlOg2s)
A spokeswoman for Everstone did not immediately reply to a Reuters’ email seeking a response.
($1 = 65.7200 Indian rupees)
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