RBI approves to a merger between Hinduja Leyland Finance (HLF) and another company in the same group, called NDL Ventures. Both HLF and NDL Ventures are part of the larger Hinduja Group, which is owned by Ashok Leyland, a major Indian manufacturer of trucks and buses.
Ashok Leyland has a financial services arm called Hinduja Leyland Finance (HLF) which provides loans, especially for commercial vehicles and other financial products. Hinduja Leyland Finance (HLF) is a non-banking financial company (NBFC) which primarily provides vehicle financing solutions, especially in the commercial vehicle segment (like trucks, buses, and light commercial vehicles). Over time, it has diversified into other financial products. HLF also owns a housing finance subsidiary called Hinduja Housing Finance LTD (HHFL) and is the 4th biggest affordable housing finance company in India.
NDL Ventures, which used to be in digital and media businesses, is now focusing on finance after moving those businesses to another company.
After the merger HLF and NDL Ventures will now combine to form a single company. This could be done to streamline operations, reduce costs, or expand into new financial services areas. Since the merger involves companies offering financial services, RBI’s approval was required to ensure everything is in line with financial regulations.
Hinduja Group plans After HLF into NDL Ventures merger:
By merging HLF into NDL Ventures, the Hinduja Group plans to:
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Strengthen the combined business with total assets over ₹29,000 crore.
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Create a more powerful finance company with better growth potential.
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Eventually list the merged company on the stock market through a process called a reverse merger (where a private company becomes public by merging with an already public one).
RBI’s approval is a key step that allows the merger to move forward. Now, the companies can begin the next steps like getting approvals from shareholders and other regulators.