Ashok Leyland in the limelight

Ashok Leyland is currently very close to its 52-week high of Rs.76.05, quoting at Rs.75.40 and this is after briefly trying to touch Rs.76 at Rs.75.70.

The stock, which has caught the fancy of investors and institutional investors alike is doing well today and that too with good reason. The company has informed that it has divested 48.5% equity stake held in Ashok Leyland Wind Energy Limited (ALWEL) to a buyer and all the relevant agreements to this effect have been signed and closing of the deal has been completed.

Consequent to the above, the shareholding of the Company in ALWEL has come down from 60% to 11.5% and hence ALWEL ceases to be a subsidiary of the Company with immediate effect. As part of the transaction, the Company has also sold its windmill assets on slump sale basis.

Though the company has made a small profit of Rs.6 crore in the above transactions, the market is happy that it worked out into a profit.

The company had acquired Avia Truck Business  Unit, a leading manufacturer in Europe in 2006, for around US$ 35 million. It expanded the business and the product portfolio.