"At the meeting held today, the Board of Directors of the company unanimously approved the proposal of amalgamating Hinduja Foundries Ltd, a Hinduja Group company with Ashok Leyland subject to various regulatory and shareholders approval of both the companies," a company statement said.
The Board also approved the exchange ratio on the amalgamation in which one hundred equity shares of Rs 10 each of Hinduja Foundries Ltd will get 40 shares at Rs one each fully paid of Ashok Leyland Ltd.
"One Thousand 2008 series GDRs of Hinduja Foundries Ltd will get 133 equity shares of Rs one each fully paid of Ashok Leyland," it said.
"One 2016 series GDRs of Hinduja Foundries Ltd will get 4,800 equity shares of Rs one each fully paid of Ashok Leyland Ltd," it said.
The proposed date of amalgamation is October 1, 2016.
"We are confident that the roll out of the best practices of Ashok Leyland will benefit Hinduja Foundries Ltd. While it is a critical supplier to Ashok Leyland Ltd, it will continue its focus to grow its relationships with other customers," he said.
"In fact the new arrangement will help in providing a wider range of solutions to them. There is so much more Hinduja Foundries can do under the new arrangement," Dasari said in the statement.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.