Ashok Leyland to acquire OHM India with an investment of ₹300 crore

New Delhi, India (Urban Transport News): Ashok Leyland, the flagship company of the Hinduja Group, has announced its plans for a complete acquisition of OHM Global Mobility Pvt Ltd, along with a substantial investment of Rs 300 crore into the acquired entity. This strategic move is aligned with Ashok Leyland's electric vehicle (EV) strategy, focusing on entering the realm of e-Mobility as a Service (eMaaS).

OHM India, a fully-owned subsidiary of OHM International Mobility Ltd UK (OHM UK), will be wholly acquired by Ashok Leyland. Hinduja Automotive Ltd, the promoter, directly holds a 20% stake, and indirectly through other subsidiaries, holds 43.23% in OHM UK.

The acquisition is expected to bolster operational efficiency and synergy, integral to Ashok Leyland's broader EV goals. OHM India is envisioned to operate within transportation, logistics, and eMaaS, aligning with the burgeoning electric mobility landscape.

To facilitate the expansion and operations of OHM India, Ashok Leyland is prepared to inject fresh equity or preference capital of up to Rs 300 crore, which will be infused in one or multiple stages to meet the company's evolving business requirements.

OHM India currently holds a paid-up share capital of Rs 1 lakh, and the cost of acquisition stands at Rs 10 per share. The valuation has been determined through an independent assessment, and the acquisition value is at par.

Established on March 8, 2021, in India, OHM India is primed to lead the eMaaS sector. While operations are yet to commence, the company's foundation signifies its forthcoming role in shaping the future of electric mobility services.

This strategic move by Ashok Leyland underscores its commitment to embracing sustainable transportation solutions and capitalizing on the evolving trends in the electric mobility ecosystem. As the company acquires OHM India and invests significantly in its expansion, it sets the stage for a dynamic presence in the realm of e-Mobility as a Service, contributing to the growth and development of India's electric vehicle landscape.