Indian automaker Hindustan Motors (HM) is set to sell or lease its car manufacturing plant in Tiruvallur, Tamil Nadu, India to raise INR1.5bn ($24.1m).
The company is currently seeking the shareholders approval through a postal ballot for this transaction.
Hindustan Motors manufactures premium SUV Pajero Sport, premium sedan Cedia, luxury SUV Outlander and Montero at this plant in a technical collaboration with Japanese-automaker Mitsubishi Motors.
BSE filing of the company said, "Hereby accorded to the board of directors of the company to sell, lease or otherwise dispose of the whole or substantially the whole or part of Chennai Car plant of the company at Adigathur, Tiruvallur district in Tamil Nadu to such person or persons and for such consideration which shall not be less than INR1.5bn."
"In the present day and circumstances, it is imperative to induct a suitable investor or a global leader in the respective businesses for viability in the long term and therefore, the company has been looking at suitable proposals for Chennai Car Plant," the filing added.
