KuberGrow Team Hinduja Leyland Finance, the leading non-banking financial company (NBFC) sponsored by Ashok Leyland, is all ready to float but the long-awaited IPO is still holding on to regulatory clearance. The firm is waiting for a No Objection Certificate (NOC) from the Reserve Bank of India (RBI), as informed by Shenu Agarwal, CEO and Managing Director, Ashok Leyland. After receiving the nod, it will take two quarters more to complete the IPO process and list on Dalal Street.
Founded in November 2008, Hinduja Leyland Finance is a major Indian financial services player with commercial and personal vehicles finance, construction equipment finance, and property-backed lending. Backed by Ashok Leyland, Hinduja Group’s Indian flagship firm, the NBFC has been increasing its market presence steadily.
Concurrently, Ashok Leyland has been facing difficulties in its UK-based electric vehicle (EV) business. The company is considering shutting down its Sherburn factory on the premise of a long-term decline in the UK bus market coupled with less-than-expected uptake of EVs in public transport. Switch Mobility, the UK subsidiary, has been running at an annual loss of £2-3 million and carrying a debt of around £80 million. The period of consultation for the planned shutdown will probably be between the next 45 to 90 days.
Despite such issues, Ashok Leyland is hopeful for its EV-suburb headquartered in India, Switch India. Switch India has its sights on the company breaking even by FY2026 and having made provision such that it needs no future financing from any sources in the short term. The company will proceed to finance Switch India in its future ambitions, which are indications of Ashok Leyland taking the rising Indian EV opportunity very seriously.
As the IPO process is ongoing, Hinduja Leyland Finance shall transition into a new growth phase, further consolidating its position in India’s financial space.
