RBI clears merger of Hinduja Leyland Finance with NDL Ventures

Ashok Leyland on Monday said the Reserve Bank of India (RBI) has cleared the merger scheme of its subsidiary Hinduja Leyland Finance with NDL Venture.

The Significance of RBI’s No-Objection Certificate
“We are in receipt of a no-objection certificate from the RBI for the proposed scheme of merger of Hinduja Leyland Finance with NDL Ventures,” the commercial vehicle maker said in a regulatory filing. The company said it will now move ahead with the next steps for the merger, including regulatory, shareholder and other approvals.

HLF’s Performance and the Path to Public Listing
Earlier, Ashok Leyland had said it was awaiting final regulatory clearance to procced with the public listing of the NBFC.
“Although there has been slight delay in the listing of Hinduja Leyland Finance, it continues to grow well in all parameters… Its subsidiary, Hinduja Housing Finance, is now the fourth-largest affordable housing finance company and is also delivering good numbers,” Dheeraj Hinduja, executive chairman, Ashok Leyland, said in the Q4FY25 earnings call.

NDL Ventures, following the transfer of its digital, media, and communications business to Hinduja Global Solutions, is focusing on high-growth opportunities, with this merger representing a strategic alignment to enhance shareholder value and growth potential in the finance sector, according to the NDL Ventures.

Post-merger, the merged entity will have combined assets aggregating above Rs 29,000 crore, strengthening its financial position. This merger also supports Ashok Leyland’s plan to list Hinduja Leyland Finance via a reverse merger, unlocking additional value for shareholders.

The process included the registration of NDL Ventures as an NBFC with RBI, which is crucial for the merger’s completion. This development is part of a broader strategy by the Hinduja group to consolidate and leverage its financial services and digital media businesses for better growth and shareholder returns.

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