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The Reserve Bank of India (RBI) has approved the merger of Hinduja Leyland Finance with NDL Ventures. This is a key step in a larger plan by Ashok Leyland, the parent company, to publicly list its non-banking financial company through a reverse merger. The combined entity is expected to have assets over INR 29,000 crore, strengthening its financial position. The approval paves the way for the company to proceed with other regulatory and shareholder approvals.
The Reserve Bank of India (RBI) has approved the merger of Hinduja Leyland Finance with NDL Ventures, clearing a major hurdle for a reverse merger that has been in the works for a while. This strategic move by the Hinduja group aims to publicly list the unlisted finance company and create a new entity with combined assets exceeding INR 29,000 crore. Advertisement
The approval comes as part of a wider strategy by parent company Ashok Leyland and the Hinduja Group to consolidate their financial services and digital media businesses for better growth. This is not the first time that Hinduja Leyland Finance (HLF) has sought to go public, they had previously attempted an IPO in 2016 and 2018, which got delayed by market conditions and the NBFC crisis during that time.
With the RBI's "no-objection certificate," the company will now move forward with obtaining other necessary approvals from regulators and shareholders. The merger is expected to be completed in the next 6-9 months, after which shareholders of HLF will receive 23 shares of NDL Ventures for every 10 shares they hold in HLF, as per the approved share swap ratio. This reverse merger approach allows HLF to list publicly much faster than through a traditional IPO.
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