Ashok Leyland Approves ₹375 Crore Investment In UK Subsidiary Optare Plc
Ashok Leyland has received board approval for investing up to £30 million (₹375 crores) in its UK subsidiary Optare Plc as equity in tranches. The subsidiary, which manufactures buses and commercial vehicles and serves as holding company for electric vehicle initiatives, reported strong revenue growth from ₹229.72 crores in FY23 to ₹1,232.59 crores in FY25.

*this image is generated using AI for illustrative purposes only.
Ashok Leyland has announced board approval for a major investment initiative in its international operations, with the company committing up to £30 million (approximately ₹375 crores) to its UK subsidiary Optare Plc. The investment will be made as equity in one or more tranches, with completion targeted by March 31, 2026.
Investment Details
The commercial vehicle manufacturer's board has formally approved the substantial capital investment under Regulation 30 of SEBI Listing Regulations. The investment represents a significant financial commitment to strengthen the company's overseas operations.
| Investment Parameter: | Details |
|---|---|
| Investment Amount: | Up to £30 million (₹375 crores) |
| Target Company: | Optare Plc |
| Location: | United Kingdom |
| Investment Type: | Equity investment |
| Completion Timeline: | Within March 31, 2026 |
| Nature of Consideration: | Cash |
Subsidiary Performance and Background
Optare Plc, incorporated on January 23, 2008, operates in the manufacture and sale of buses and commercial vehicles. The subsidiary serves as the holding company for Ashok Leyland's electric vehicle initiatives, including Switch Mobility Limited UK and Switch Mobility Automotive Limited.
| Financial Year: | Revenue (Consolidated) |
|---|---|
| FY 2024-25: | ₹1,232.59 crores |
| FY 2023-24: | ₹707.30 crores |
| FY 2022-23: | ₹229.72 crores |
Shareholding Structure
Currently, Ashok Leyland holds 93.00% shareholding in Optare Plc. Post the equity allotment, the company's shareholding will increase to 93.28%. Additionally, Hinduja Automotive Limited, a promoter of Ashok Leyland, holds 6.52% of Optare Plc's share capital, making this a related party transaction conducted at arm's length based on an independent valuation report.
Strategic Purpose
The approved funding will support loan repayment and other business requirements of Optare Plc. This investment decision reflects Ashok Leyland's strategic focus on expanding and strengthening its international presence, particularly in the electric vehicle segment through its UK operations.
Historical Stock Returns for Ashok Leyland
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.19% | -5.37% | -17.00% | +19.87% | +64.21% | +190.44% |


































