NDL Ventures UC at new high

Shares of NDL Ventures surged sharply today, with the stock locked in the 20% upper circuit and a new 52-week new high at Rs 117.60 on the BSE in morning trade, as investors reacted to a key regulatory approval tied to its proposed merger with Hinduja Leyland Finance Ltd. The counter saw limited supply amid a relatively low free float and strong buying interest following the development.

The trigger for the move was the Competition Commission of India’s (CCI) approval of the merger of Hinduja Leyland Finance (HLFL) into NDL Ventures, a transaction that had earlier been cleared by the boards of the respective companies. The merger, once completed, will result in HLFL being absorbed into NDL Ventures, making the latter a listed vehicle for the financial services business of the Hinduja Group.

The integration is expected to bring scale, improve access to capital markets, and potentially unlock value through a simplified corporate structure and a broader financial services offering.

From an investor standpoint, the approval removes a key regulatory overhang and moves the transaction closer to completion, improving visibility on the merged entity’s future earnings profile.

The market appears to be pricing in potential synergies from the consolidation, including cross-selling opportunities, improved balance sheet strength, and a stronger presence in vehicle financing and allied segments.

While financial disclosures of the merged entity and the final share-swap ratio will remain key variables, the CCI nod marks a significant milestone in the restructuring, explaining the sharp re-rating in the stock in early trade.