Switch Mobility receives a Rs 537 crore investment from Ashok Leyland

Ashok Leyland, the flagship company of the Hinduja Group, has increased its investment in its UK-based electric vehicle business Swift Mobility by an additional £50.68 million (about Rs 537 crore), bringing its total to £113 million.

Following Ashok Leyland’s announcement in November of last year that its Board had authorized an investment of Rs 1,200 crore in Optare in one or more tranches, this is the second tranche of investment.

Ashok Leyland’s worldwide electric vehicle ventures, such as Switch Mobility Ltd. in the UK and Switch Mobility Automotive Ltd. in India, are under the holding company Optare.

Ashok Leyland made a £62.87 million (Rs 663 crore) investment in Optare in December. Ashok Leyland’s ownership in Optare has risen from 92.19% to 92.59% with the most recent round.

According to Ashok Leyland’s regulatory filing, Optare and Switch Mobility would utilize the additional money for R&D, capital expenditures, and satisfying operational obligations in the UK and India.

Optare reported consolidated revenue of £229.72 crore for the fiscal year 2022–2023. Its total turnover was £244.02 crore in FY22 and £292.38 crore in FY21.

Moreover, the Hinduja Group has a 6.9% share in Optare via its promoter, Hinduja Automotive Ltd. According to Ashok Leyland, an independent valuer’s study served as the foundation for the investment appraisal.

The board of Optare most recently granted shares to Ashok Leyland on February 12.

According to Ashok Leyland, Switch Mobility Ltd. intends to spend up to €100 million in building an electric car manufacturing plant in Spain.

On the NSE, Ashok Leyland’s shares ended at Rs. 171.80 on Monday.