Hinduja Leyland Finance, CL Educate file for IPO2 min read . Updated: 31 Mar 2016, 02:54 AM IST
Hinduja Leyland Finance is looking to raise primary capital to the tune of Rs500 crore through the IPO
Mumbai: Hinduja Leyland Finance Ltd (HLF), the commercial vehicle financing unit of Ashok Leyland Ltd, on Wednesday filed its draft initial public offering (IPO) documents with the Securities and Exchange Board of India (Sebi).
HLF is owned by Ashok Leyland and other entities of the Hinduja Group.
HLF is looking to raise primary capital to the tune of ₹ 500 crore through the IPO, according to the copy of the draft prospectus available on the website of investment banks hired to manage the offer.
The IPO will also consist of an offer for sale of shares by private equity fund Everstone Capital. Including the primary offer and the offer for sale, the total size of the IPO is expected to be around ₹ 700 crore, said two people aware of the development, requesting anonymity.
In July 2013, Everstone had invested ₹ 200 crore for a 15% stake in Hinduja Leyland Finance Ltd. Axis Capital Ltd, ICICI Securities Ltd, SBI Capital Markets Ltd and Yes Securities (India) Ltd will manage the share sale.
In September, Mint reported that the company was planning to raise around ₹ 650 crore through an IPO at a valuation of around ₹ 4,000 crore. According to the draft prospectus, HLF intends to use the IPO proceeds to augment its capital base to meet future requirements.
HLF was incorporated in 2008 as a non-deposit taking non-banking financial company with the Reserve Bank of India. It provides customized finance for utility vehicles, tractors, cars and two-wheelers among other vehicles, focusing on the semi-urban and rural sector.
As on 31 March 2015, HLF had ₹ 6,550 crore in assets under management and a presence across 1,500 locations. The company reported revenue of ₹ 821.79 crore in 2014-15 compared to ₹ 641.5 crore in the previous year, according to the draft prospectus. Net profit was at ₹ 110.9 crore compared with ₹ 78 crore in the previous year.
CL Educate Ltd also filed its draft share sale documents with Sebi on Wednesday.
CL Educate’s business comprises test preparation and training services under the brand Career Launcher; publishing and content development; vocational training programmes and operating K-12 schools under the brand Indus World Schools.
According to the prospectus, the firm plans to use proceeds from the IPO to fund working capital needs, pre-payment of debt and for acquisitions and other strategic initiatives.
So far this year, five firms have raised approximately ₹ 2,385 crore through the IPO route. In 2015, 21 companies had raised ₹ 13,614 crore through IPOs.