Ashok Leyland is exploring a $200 million funding round for its electric mobility unit, OHM Global Mobility. The Hinduja family's conglomerate is working with an adviser to attract global private equity firms, potentially valuing OHM between $800 million and $1 billion. The company offers pay-per-use electric bus contracts, aiming to expand its fleet significantly.

Hinduja said to seek $200 million for Ashok Leyland’s electric mobility services unit

Ashok Leyland Seeks $200 Million Funding for Electric Mobility Unit

Ashok Leyland, a major commercial vehicle manufacturer, is exploring a $200 million funding round for its electric mobility unit, OHM Global Mobility. The company is working with an adviser to attract global private equity firms, potentially valuing OHM between $800 million and $1 billion.

Background

Ashok Leyland Ltd., a part of the billionaire Hinduja family's conglomerate, is considering raising about $200 million for its electric mobility services unit. According to people familiar with the matter, the company is working with an adviser to gauge interest from potential investors, including global private equity firms.

A funding round might value OHM Global Mobility Pvt at $800 million to $1 billion, people said.
The Hinduja family may decide to not proceed if investor interest doesn't meet its valuation expectations.

Key Details

OHM provides electric buses and other commercial EVs to customers on pay-per-use contracts, enabling them to adopt electric fleets without upfront costs. The company also maintains the vehicles.

Ashok Leyland Chief Executive Officer Shenu Agarwal said during an earnings call in August, "Beyond that, we are very open to looking at other fundraising options."

At that time, OHM operated over 850 buses and aimed to run more than 2,500 within 12 months, Agarwal said.

Investment and Growth Plans

Hinduja has already invested 3 billion rupees ($33 million) in OHM and plans to inject another 3 billion to help fund its operations through March.

The company's growth plans include expanding its fleet significantly and offering pay-per-use electric bus contracts.

Related Information

Representatives for Ashok Leyland and OHM Mobility declined to comment.

What You Need to Know

Ashok Leyland is exploring a $200 million funding round for OHM Global Mobility.
The company is working with an adviser to attract global private equity firms.
OHM provides electric buses and other commercial EVs on pay-per-use contracts.
The Hinduja family has invested 3 billion rupees ($33 million) in OHM and plans to inject another 3 billion.