The Hinduja Group, which controls several listed companies such as IndusInd Bank, NXTDIGITAL and Ashok Leyland, has pledged around 30 crore shares of Ashok Leyland, the group's flaship company in India.
The pledge was created through Hinduja Automotive Ltd, a UK-based holding company and a key part of the Hinduja Group, which serves as the primary vehicle through which the Hinduja family holds its stake in Ashok Leyland.
At the closing price of Rs 214 each, the 30 crore shares of the CV maker are worth around Rs 6,432 crore.
The total promoter group shareholding in Ashok Leyland Ltd as of the end of December was 150.07 crore (1.5 billion) shares. As of March 26, approximately 42.5% of HAL’s shareholding in Ashok Leyland is pledged, according to the company.
However, the actual amount of the loan was not disclosed in the regulatory filing. While it was clear that the pledge was made in favor of overseas lenders, the identity of the lenders was not disclosed, nor was the purpose of the loan facility wasn't disclosed in the regulatory filing.
The move comes at the time of a drastic decline in the value of IndusInd Bank, the second major holding of the Hinduja Group in India.
IndusInd Bank shares had fallen to Rs 637 this week from their peak of Rs 1,079 in February. The bank's stock plummeted 27% in a single day due to discrepancies in its derivative portfolio.