Buzz around Lokesh stake does'nt die

The recent past has seen the market abuzz with talk of auto major, Ashok Leyland, looking to pick up a strategic stake in cylinder block maker, Lokesh Machines. It may be recalled that some time ago there had been talk that M&M was looking to acquire Lokesh Machines, a development both M&M and Lokesh vehemently denied.

M&M and Ashok Leyland top Lokesh Machines’ (an OE supplier for both) client list so much so that the company had set up special standing/assembly lines for the two heavyweights almost six years ago. In return, Lokesh had taken a financial guarantee from the two companies. “As of now there is no stake sale proposal with either M&M or Ashok Leyland,” said Lokeshwara Rao, MD Lokesh Machines, in response to a query from ET.

Company sources did mention that a few private equity entities have expressed a desire to invest in Lokesh Machines. Ashok Leyland ended weak at Rs 36.15 on the BSE, while M&M ended at Rs 693.65. Lokesh Machines also ended lower at Rs 111.35 in line with the broad-market trend.