The board of directors of Hinduja Leyland Finance Ltd. (HLFL) has approved the merger of the company with NXT Digital Ltd. (NDL)
The scheme does not involve any cash consideration, the city-based NBFC said through its parent company Ashok Leyland in a regulatory filing.
HLFL shareholders would get 23 equity shares in NDL for every 10 shares held. The proposed merger, once completed, would fuel the expansion plans of both the companies.
The proposal will come into effect soon after the completion of on-going transfer of the ‘Digital Media & Communications Business undertaking’ into Hinduja Global Solutions Ltd.
The move is in line with NDL’s vision of pursuing high-growth opportunities, post the decision to transfer the digital, media and communications business undertaking of it to Hinduja Global Solutions, it said in a statement.
For FY22, HLFL reported total income from operations of ₹2,669 crore, net worth of ₹3,852 crore and AUM of more than ₹29,000 crore.
NDL posted total income from operations of ₹764 crore and has net worth of ₹469 crore.
Shares of NDL rose by ₹12.95 or 3.07% to close at ₹434.80 on the BSE.