Ashok Leyland gains on acquisition news, SML Isuzu jumps over 6% before trimming gains

On Wednesday, March 26, 2025, investor focus turned to SML Isuzu Limited and Ashok Leyland Limited, as their shares saw notable movement in the stock market. The excitement came after reports suggested that Ashok Leyland could be on the verge of fully acquiring SML Isuzu. The news sent SML Isuzu's stock surging by 6.28% to hit ₹1,710 per share on the National Stock Exchange (NSE) in early trading, though it later pared gains.

Ashok Leyland also gained momentum, climbing to ₹215.20 per share on the NSE, marking a 2.45% increase. Investor interest in these stocks remains strong, with many closely tracking the developments.

Ashok Leyland's possible takeover of SML Isuzu

According to reports, Ashok Leyland, one of India's top commercial vehicle manufacturers, is in advanced discussions to acquire SML Isuzu. Sources suggest that negotiations are ongoing among Ashok Leyland, Japan's Sumitomo Corporation and Isuzu Motors Limited, the key stakeholders in SML Isuzu. Sumitomo holds a 44% stake, while Isuzu Motors owns 15% of the company.

SML Isuzu is a well-known name in India's commercial vehicle space, producing a range of buses, trucks, and specialised application vehicles. Established as Swaraj Vehicles Limited in 1983, it has undergone multiple rebrandings before taking on the name SML Isuzu in 2011. In an exchange filing on Tuesday, Ashok Leyland announced a conference call scheduled for Wednesday, March 26, 2025, from 5:15 PM to 5:45 PM IST. Investors are eagerly awaiting details that could shape their share market investment strategies.

Stock performance overview

Ashok Leyland's shares have delivered solid returns, rising nearly 25% in the last year and an impressive 385% over the past five years. Meanwhile, SML Isuzu's stock has dipped over 17% in the last year but has still surged 421% over five years.

As of March 26, 2025, at 1:05 PM, SML Isuzu was up by 3.80% at ₹1,670 per share, while Ashok Leyland rose by 3.02%, reaching ₹216.38 per share. With speculation of a major acquisition brewing, all eyes are on Ashok Leyland and SML Isuzu. Investors are keenly watching for further updates that could influence market movements.