Ashok Leyland is planning to offload its stakes in few of its subsidiaries and also in IndusInd Bank (IBL). The proposed dis-investments of non-crore assets will help the company to reduce its debt, which currently stands at around Rs 3,500 crore.    

For the commercial vehicle major, the proposed offloading of stakes would bring around Rs 500 crore over the next 12 months. Addressing analysts, K Sridharan, Chief Financial Officer, Ashok Leyland said that either the company will partially exit or totally divest its stakes from the companies.    

The company hired investment bankers and consultants to find a strategic customers and buyers, he said. It may be noted the company has already hired consulting firm McKinsey to advise the company on better working capital management.    

Some of the company in which Ashok Leyland is planning to dilute its stake includes IndusInd Bank (in which the company holds shares worth around Rs 700 crore), Hinduja Leyland Finance (HFL), Albonair GmbH, Defiance Technologies and Defiance Testing. The sale of investments in such companies should help Ashok Leyland raise around Rs 500 crore.    

The process is expected start once the merger of two of its associate companies Ashley Holdings and Ashley Investments with Ashok Leyland are completed.