Ashok Leyland increases stake in Ashley Aviation to make it a wholly-owned subsidiary

January 3, 2019: Leading commercial vehicle manufacturer Ashok Leyland has acquired 27.25 percent additional stake in Ashley Aviation, increasing its shareholding in the aviation firm to 76.25 percent.

"The company has acquired 10,89,985 shares of Rs 10 each constituting 27.25 per cent in the paid-up share capital of Ashley Aviation Limited (AAL) at a price of Rs 5.10 per share," Ashok Leyland said in a filing to the Bombay Stock Exchange.

With this Ashley Aviation becomes a wholly-owned subsidiary of the company. Ashok Leyland paid Rs 55.59 lakh to acquire the additional stake. The company has also obtained the approval of the Ministry of Civil Aviation in this regard, it informed the exchange.

The Hinduja group flagship firm proposes to acquire the balance equity shares held by individuals in AAL before March 31, 2019.