Hinduja Tech (HTL), the digital technology arm of multi-billion conglomerate Hinduja Group, plans to sell a minority stake in the company and is engaged in early talks with private equity funds, said multiple people aware of the development.
The company, a subsidiary of flagship company Ashok Leyland, plans to raise about ‘830 crore ($100 million) at a valuation of $400 million (‘3,300 crore) to meet expansion in e-mobility industry, said sources.
Investment bank Rothschild is mandated to find an investor. Ashok Leyland owns about 74% in HTL.
ET BureauFocused on the automotive industry, Hinduja Tech Digital Technologies Services & Solution division offers comprehensive end-to-end SAP Automotive Solutions, including consulting, implementation, migration, customisation, and ongoing support and maintenance services.
Its key clients include Daimler, Renault, Ford, Toyota, Fiat, Nissan and Hyundai.
HTL has two delivery centres in Chennai and Pune. HTL, which works with leading automotive organisations (OEMs & Tier-X Suppliers) and disruptive mobility players, has wholly owned subsidiaries in Germany, USA, Shanghai, UK, Canada and Czech Republic and branches in France and Japan.
Buyback in 2021
In 2021, Ashok Leyland bought back 38% in HTL, held by Nissan International Holding BV, for ‘70.2 crore. In 2014, Ashok Leyland had sold the minority stake to Nissan.
HTL posted a total income of ‘400 crore as of March 31, 2023 against ‘260 crore in FY22. It posted a PAT of ’20 crore in FY23 against ’28 crore in FY22.
Last year, HTL expanded its presence in the US market with the acquisition of Drive System Design (DSD), an engineering consultancy which provides advanced engineering to automotive, commercial vehicle, off-highway, defense and aviation industries from locations in the United Kingdom, the United States, and Asia.
Operations of HTL is spearheaded by CEO Kumar Prabhas, former COO and whole-time director on the board of L&T Technology Services. Prabhas, an IT veteran, has worked with Unisys, Sasken, Wipro and Multitech Software.
When contacted, an HTL spokesperson declined to comment.
