Hinduja Leyland Finance to raise Rs 200 crore from shareholders

KOLKATA: Everstone Capital-backed Hinduja Leyland Finance is looking to raise Rs 150-200 crore of capital from existing shareholders in next three quarters, chief executive Sachin Pillai said.
The non-bank lender has shelved its initial public offer plan while Pillai told ET that its stakeholders are committed to infuse money to fund growth. They will pump in capital proportionate to their shareholding.

Various Hinduja Group companies together holds about 86% of shares in the company including 57% from the flagship Ashok Leyland, while private equity firm Everstone has 14% interest.

These investors had infused Rs 250 crore into the company last fiscal and another Rs 100 crore in the first quarter this fiscal.

"The stakeholders are committed to infuse capital as and when required. We aim to maintain 40% growth," Pillai said.

The Chennai-based non-bank firm has Rs 14,000 crore loan assets as on March 2017 with 81% of it contributed by vehicle financing. Another 10% comes from loans against property and the balance 9% is built by buying out portfolios from other companies.

The company has recently bought loans worth Rs 107 crore from eight small financial firms in a single pooled loan issuance.

Pillai said the lender would like to have 80% loan portfolio from vehicle financing in the future as well. About 40% of it comes from commercial vehicle financing.

The Securities & Exchange Board of India had approved the IPO plan in June last year but the company announced the withdrawal of it days ahead of the 12-month deadline. Sebi’s approval for an IPO remains valid for a year.

"The board of directors at their meeting held on May 23, 2017 had decided to withdraw the DRHP (Draft Red Herring Prospectus) and accordingly it had been withdrawn from Sebi on June 16, 2017," the company had said in a stock exchange filing.