Ashok Leyland plans to raise up to Rs 750 crore to finance the capital requirements of the company.
At a board of directors meeting held on Tuesday, it was decided that the funds will be raised through a qualified institutional placement to eligible buyers of securities to be listed on the Indian stock exchanges, an international offering through a public issue and/or a private placement to foreign investors.
A committee of directors has been formed to decide the quantum and timing of the offering, the form of securities, the class of investors to whom the securities will be allotted, the issue price, the premium at which the shares will be issued/on conversion of the securities, the terms of redemption and dividend entitlement.
The committee will also deal with the listing of the securities in one or more stock exchanges in India or abroad, the appointment of investment bankers, legal advisors and auditors, said the company in the stock exchange notice.
A copy of this announcement was also marked to the London Stock Exchange. The company, however, could not be reached for comments
Last year, Ashok Leyland had raised $150 million through external commercial borrowing at a rate less than five per cent. Recently, the Ashok Leyland-Nissan alliance had announced its plan to invest Rs 4,150 crore on manufacturing light commercial vehicles at various plants in Tamil Nadu.
After Dost, the joint venture's next launch is the multi-utility vehicle Evalia. Evalia is expected to be launched by 2012-end.
Ashok Leyland is planning to launch the Avia range of vehicles and the Jan Bus in the country this year.
On Tuesday, the company's shares closed 0.74 per cent higher at Rs 27.05 on the BSE.