Shares of Ashok Leyland, on Thursday, surged 7 per cent to Rs 124.80 on the BSE after the commercial vehicles major said it has decided to form two new subsidiaries as part of its plans to strengthen green transport solutions.
The company, through its subsidiary Switch Mobility Ltd -- the UK-based electric vehicle producer of buses and vans, is creating two units, Ashok Leyland said in a statement. The first unit -- Switch Mobility Automotive Ltd -- is being formed to carry on the electric vehicle strategy in India and forms part of its global entity. The second subsidiary -- OHM Global Mobility Pvt Ltd -- will focus on providing mobility as a service offering, it said.
At 11:18 AM, the stock was trading 6.17 per cent higher at Rs 124 as compared to 0.7 per cent gain in the benchmark S&P BSE Sensex. Around 3.31 crore shares have changed hands on the BSE and NSE combined, so far. The stock was trading close to its 52-week high of Rs 138.85, hit on February 4, 2021.
“Switch Mobility Automotive Ltd will help us fulfil our aspiration of zero carbon emission transportation.
“With a strong presence and proven expertise in the commercial vehicle market in India and the experience of operating a large number of electric vehicles successfully in India and the UK, we see huge opportunities for growth through Switch's expansion in Indian and global markets,“ Ashok Leyland Chairman Dheeraj Hinduja said.