The board also approved the share exchange ratio for the proposed merger. The ratio was approved based on the comprehensive valuation exercise carried out and recommended by two independent valuers, KPMG Valuation Services LLP and SSPA & Co., chartered accountants.

As per the valuation, the shareholders of HLFL will get 23 fully paid equity shares of face value of Rs 10 per share in Nxt Digital for every 10 fully paid equity shares of face value of Rs 10 each held by them in HLFL. The proposed merger, once completed, will fuel the expansion plans of both companies, said Nxt.

The company said in a statement, “The move is in line with NDL's vision of pursuing high-growth opportunities; post the decision to transfer the digital, media and communications business undertaking of NDL to Hinduja Global Solutions.”

HLFL is one of India's leading finance NBFCs with an AUM of over Rs 29,000 crore and a pan-India presence in 1,550 locations across 23 states and 2 union territories. HLFL is a subsidiary of Ashok Leyland.

The proposed scheme is subject to all shareholder and regulatory approvals and the approval of the National Company Law Tribunal (NCLT).

NXTDigital's main activities span over three segments namely Media and Communication and Investments and Treasury and others. The company reported a net loss of Rs 38.87 crore in Q1 FY23 as against a net loss of Rs 31.63 crore posted in Q1 FY22. Net sales slipped 4.1% YoY to Rs 236.80 in Q1 FY23.