Shares of Ashok Leyland were trading in the green and 1% high on 6 December after the company raised its stake in Optare Plc UK for about Rs 662 crore.

In its regulatory filing, the company now holds a 92.20% stake in Optare Plc, UK, from its previous holding of 91.63%.

Optare Plc, UK, is in the business of manufacturing and selling commercial vehicles and is the holding company of Switch Mobility Limited and Switch Mobility Automotive Limited, which is a subsidiary of the company. Optare reported a consolidated revenue of Rs 230 crore as of March 2023.

The reason behind increasing the stake in its British subsidiary was to meet its capital expenditure, research and development, and operational requirements of Optare and Switch Mobility.

In November, the company witnessed a 3% decline in its total sales in both the domestic and international markets. The sales of medium and heavy commercial vehicles declined by 10% to 8,500 units in November against 9,474 units sold in the same month last year. On the other hand, the total number of light commercial vehicles sold increased by 9% to 5,553 units.

At 3:30 pm, the shares of Ashok Leyland closed 1.00% higher at Rs 176.70 on NSE.