Hinduja Group flagship Ashok Leyland has invested another £50.68 million (Rs 537 crore) in its UK-based electric vehicle subsidiary Swift Mobility, taking its total investment so far to £113 million.
This is the second tranche of investment after Ashok Leyland had announced in November last year that its Board had approved an investment of Rs 1,200 crore in Optare in one or more tranches.
Optare is the holding company of Ashok Leyland's electric vehicle initiatives globally including Switch Mobility Ltd UK and Switch Mobility Automotive Ltd India.
In December, Ashok Leyland had invested £62.87 million (Rs 663 crore) in Optare. With the latest round, Ashok Leyland's stake in Optare has increased from 92.19% to 92.59%.
The fresh funds will be used by Optare and Switch Mobility for capital expenditure, R&D and meeting operational requirements in both UK and India, Ashok Leyland said in a regulatory filing.
For fiscal year 2022-23, Optare had posted consolidated revenue of £229.72 crore. In FY22 and FY21 its consolidated turnover was £244.02 crore and £292.38 crore respectively.
The Hinduja Group also holds 6.9% stake in Optare through promoter entity Hinduja Automotive Ltd. Ashok Leyland said the investment valuation was based on a report from an independent valuer.
The latest allotment of shares to Ashok Leyland by Optare's board happened on February 12.
Ashok Leyland had said that Switch Mobility Ltd is planning an electric vehicle manufacturing facility in Spain which could entail an investment of €100 million.
Shares of Ashok Leyland closed at Rs 171.80 on the NSE on Monday.