Chennai-based Ashok Leyland (ALL), India's second-largest commercial vehicle maker, said today that it is evaluating the option of letting its shareholders invest in the joint venture companies with Nissan through a proper funding route.
Leyland is looking to raise Rs 600 crore for the joint venture facility located near Chennai, which is the equity participation of the company for the combined investment of about Rs 2,400 crore. Nissan will pump Rs 600 crore as equity, while the balance of about Rs 1,200 crore will be raised through debt.
K Sridharan, CFO, Ashok Leyland, said: "We are looking at prospects of (our) shareholders participating in the JV with Nissan. We aim to raise part or full amount of our equity participation in the joint venture for which we may look to incentivise our shareholders by providing them with some kind of entitlement." The official was speaking at an analyst meet here.
The company so far has not yet decided on the means to raise the required funding but stated that it was considering a preferential share issue, rights issue or convertible bonds, which will lead to scaling down of Ashok Leyland's holding in the three joint ventures.
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