Ashok Leyland to invest ₹375 crore in UK unit Optare, stake rises to 93.28%

Ashok Leyland has approved an investment of up to ₹375 crore in its UK subsidiary Optare Plc through equity in tranches, aimed at loan repayment and business needs, the company said in a regulatory filing.

By Vivek Dubey

Ashok Leyland, on Friday, approved an investment of up to GBP 30 million, or about ₹375 crore, in its UK-based subsidiary Optare Plc through equity in one or more tranches.

The company disclosed the decision under Regulation 30 of SEBI Listing Regulations. Optare Plc operates in the manufacture and sale of buses and commercial vehicles. Its consolidated revenue stood at ₹1,232.59 crore as of March 31, 2025.

The transaction qualifies as a related party transaction. Hinduja Automotive Limited, promoter of Ashok Leyland, holds 6.52% stake in Optare Plc. The company said, “The investment is being undertaken based on a valuation report from an Independent Valuer.”

The investment will be used “Towards repayment of loan / other business requirements.” The consideration will be in cash. The acquisition is expected to be completed by March 31, 2026.

Ashok Leyland currently holds 93% stake in Optare Plc. Post allotment, its shareholding will increase to 93.28%.

Optare Plc, incorporated on January 23, 2008, is also the holding company for the group’s electric vehicle initiatives, including Switch Mobility Limited, UK and Switch Mobility Automotive Limited.

The company reported consolidated turnover of ₹707.30 crore in FY24 and ₹229.72 crore in FY23.