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By Malvika Gurung
Investing.com -- Shares of the media company NXTDIGITAL Ltd (NS:NXTD) were trading 11.54% higher at Rs 465.85 apiece at the time of writing, after rallying 17% to Rs 486.2 apiece on Thursday.
The stock surge resulted after the company’s board of directors announced approving the merger of NBFC Hinduja Leyland Finance (HLFL) with the company.
The merged entity will have assets aggregating above Rs 29,000 crore, and the resulting shareholders will receive shares in accordance with the share swap valuation, currently, subject to regulatory approvals.
NX Digital (NDL) is the media vertical of the Hinduja Group (HGSL), while HLFL is the subsidiary of Ashok Leyland (NS:ASOK).
Last month, the company’s board had approved the scheme of arrangement between it and HGSL for demerging its ‘Digital, Media & Communication Business' undertaking to Hinduja Global.
NXTDigital is now looking forward to evaluating proposals that could factor in incremental value to the company’s growth-oriented business opportunities.
Also, the merger with HLFL will allow NDL’s shareholders to participate in and bolster the growth plans of HLFL thereby creating value for shareholders, stated the company’s release.