Hinduja Group-owned NxtDigital rallied as much as 6 per cent during the early trade on Wednesday after the company board approved the merger of Hinduja Leyland Finance (HLFL) with itself.
The board approved the merger of Hinduja Leyland Finance Limited (HLFL) into NxtDigital Limited (NDL), subject to regulatory and shareholder approvals.
The board also approved the share exchange ratio for the proposed merger, which was approved based on the comprehensive valuation exercise carried out and recommended by two independent valuers.
As per the valuation, the shareholders of HLFL will get 23 fully paid equity shares of face value of Rs 10 per share in NDL for every 10 fully paid equity shares of face value of Rs 10 each held by them in HLFL.
Following the development, shares of NxtDigital rallied 6 per cent to Rs 447 before trading at Rs 437 at 9.45 am. The scrip had settled at Rs 421.85 on Tuesday.
Hinduja Leyland Finance is an NBFC (Non-Banking Finance Companies) with an AUM of over Rs 29,000 crore and a pan-India presence in 1,550 locations across 23 states and 2 union territories, which provides loans for commercial vehicles.
The Hinduja Group’s media vertical has reported a widening of its net loss to Rs 38.77 crore for the quarter ended June 30, 2022, with a total income from operations at Rs 236.8 crore during the period.
NxtDigital is a digital television services provider which is based on the headend-in-the-Sky or HITS platform. It combines the benefits of cable and DTH technologies to provide digital television entertainment.
Source: Economic Times