The Hindu Business Line : Ashok Leyland to raise $100 m via bonds/GDRs

"The decision on whether to go for foreign currency convertible bond (FCCB) or global depository receipts (GDRs) to raise $100 million will be taken at the meeting on February 28. The money raised can partly be utilised for repaying the Rs 260 crore debt in the next two years and for capacity expansion as well," Mr R. Seshasayee, Managing Director, Ashok Leyland said on Wednesday at a press conference at the Defexpo 2004, where the company has put on display its vehicles for the military.

Meanwhile, Mr Seshasayee termed the nod given by the board of the company to the stock split as an "investor friendly move". The company proposes to subdivide the equity shares from the present face value of Rs 10 each into 10 shares of Re 1 each. This proposal too will come up for approval of the shareholders on the extra-ordinary general meeting to be held on February 28.

Ashok Leyland has aggressive plans to increase its capacity over the next year and is also focusing on exports in the defence segment.

The company is at present developing a light-armoured vehicle (LAV) for the defence sector that would help it increase sales in both the domestic and export markets.

Ashok Leyland's sales to the defence segment account for 10-15 per cent of its total revenue, which is likely to grow by about 15 per cent in the next couple of years, Mr Seshasayee said.

At present, the company, primarily through its Stallion MK IV, sells around 5,000-6,000 per year to the defence establishment and is hoping to notch defence exports of 1,000 units in the next few years. Itspotential export markets are South East Asia, Africa and West Asia.

Mr Seshsayee added that the Finance Minister's announcement of a special non-lapsable Defence Modernisation Fund of Rs 25,000 crore could provide a fillip to the company's sales.

More Stories on : Overseas Borrowings | Two/Three Wheelers

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bio-Rad Labs launches new diagnostic kit for diabetes

PSL bags pipeline deal in Bangladesh

Aurobindo Pharma allots warrants to promoters

Indian Hotels mops up $150 m via foreign currency bonds

Reliance raises $250 m from overseas loans

Ashok Leyland to raise $100 m via bonds/GDRs

Lagaan and Bawarchi — recipes for India Inc

Amendments moved at L&T EGM defeated

Century Plyboards plans laminates unit

Orchid drug cleared for export to Europe

Sangeet Cinema in pact with Singapore cos for Cineplex

`Entry into regulated markets will be our focus'

Honda cars Jan sales up 90% at 2,781 units

Tata Motors Jan sales up 32 pc

Hyundai Jan sales at 17,035 units, up 66 pc