Automaker Ashok Leyland announced on August 17 that its board of directors had approved the incorporation of Hinduja Leyland Finance (HLF) into NXTDIGITAL.

“HLF proposes to merge with NXT Digital (NDL), subject to shareholder and other necessary approvals, including that of NCLT,” the company said.

The conversion ratio for incorporating Hinduja Leyland Finance into NXTDIGITAL will require an allocation of 23 NXTDIGITAL shares for every 10 Leyland Finance shares held.

NXT Digital has a net worth of Rs 469 crore, while HLF has a net worth of Rs 3,852 crore as of fiscal 2022.
NXTDIGITAL provides television services through digital cable and head-end (HITS) satellite platforms. HLF is a non-depository, non-banking financial company (NBFC) that provides financing for various vehicles.

Ashok Leyland said the proposed merger aims to unlock shareholder value, consolidate business operations and improve cash management efficiency. There is no cash consideration involved in the merger.