Hinduja Leyland Finance looks to revive IPO plan

Hinduja Leyland Finance, however, deferred its plans to go public despite receiving the markets regulator’s approval.

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Hinduja Leyland Finance, the commercial vehicle financing unit of truck maker Ashok Leyland Ltd, is looking to revive its plan for an initial public offering (IPO), two people aware of the development said.

The vehicle financier, which first filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) in March 2016, planned to raise Rs500 crore of primary capital, according to the draft share sale documents. Investor Everstone Capital also planned to sell a part of its stake through the IPO.

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Hinduja Leyland Finance, however, deferred its plans to go public despite receiving the markets regulator’s approval.

“Owing to the uncertainty in the economy on account of demonetisation, the IPO slated for Q3 last year was postponed,” the company had said in July 2017.

“The company is relooking at the IPO. They are likely to go for the share sale within this calendar year,” said one of the two people cited above, requesting anonymity as he is not authorized to speak to reporters.

The company could look at refiling its draft IPO papers by the end of the current quarter, he said. “They can receive a better valuation in the market today than what they would have received the last time as markets are better and they have also considerably grown their loan book in the last two years,” he added.

The revival of the IPO will also provide an exit route for Everstone Capital, which had invested Rs200 crore in the company in 2013, said the second person cited above, also requesting anonymity.

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