Hinduja Foundries slips 20% on news of merger with Ashok Leyland

NEW DELHI: Shares of Hinduja Foundries slipped as much as 19.9 per cent on BSE in morning trade on Thursday after the board of the automobile component firm gave its nod for amalgamating the company with heavy commercial vehicle maker Ashok Leyland, subject to regulatory and shareholders approval of both the companies.

At 10:15 am; Hinduja Foundries was locked in the lower circuit at Rs 44, down 19.93 per cent.

Ashok Leyland was trading 3.3 per cent lower at Rs 81.70. It hit a low of Rs 80.90 and a high of Rs 83 in the first 60 minutes of trade.

"At the meeting held today, the Board of Directors of the company unanimously approved the proposal of amalgamating Hinduja Foundries a Hinduja Group company, with Ashok Leyland subject to various regulatory and shareholders approval of both the companies," a company statement said.

The board also approved the exchange ratio for the amalgamation in which one holding 100 equity shares of Rs 10 each of Hinduja Foundries will get 40 shares at Re 1 each fully paid up Ashok Leyland shares.