HIPL revokes 17.33% stake in Hero Honda
The country's largest two-wheeler maker Hero Honda today said its promoter group firm Hero Investments Pvt Ltd (HIPL) has revoked 17.33% shares of the company that were pledged to three different investors.
June 23, 2011 / 19:13 IST
The country's largest two-wheeler maker Hero Honda today said its promoter group firm Hero Investments Pvt Ltd (HIPL) has revoked 17.33% shares of the company that were pledged to three different investors.
Although the auto major did not reveal the value at which the shares were revoked, as per the closing prices on the three days when the transactions were carried out, HIPL is estimated to have bought back the shares for a total
consideration of about Rs 6,150 crore.According to a filing on the Bombay Stock Exchange (BSE), HIPL revoked a total of 3,46,12,460 equity shares in three tranches on June 7, June 8 and June 10.The promoter group firm revoked 1,19,35,331 shares each from IL&FS Trust Company and IDBI Trusteeship Services, 1,07,41,798 shares have been revoked from Axis Trustee Services, Hero Honda said.After this transaction, HIPL's pledged stake in Hero Honda comes down to 2.60%.Shares of Hero Honda today rose 0.84% to close the day at Rs 1.759.35 a piece on the BSE.Following the exit of Hero Honda's erstwhile Japanese promoter Honda, HIPL's stake in the Munjals-promoted auto major was increased to 43.33% earlier this month from 17.33% as on December 31, 2010.In March, the Cabinet Committee on Economic Affairs had approved a proposal for a Rs 4,500 crore foreign direct investment in HIPL by Bain Capital and Lathe Investment.The Hero Group had earlier stated that the two private equity firms, BC India Investors II, a part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up a 29% stake in HIPL for Rs 3,650 crore.In December last year, the Indian promoter of the two-wheeler maker, the B M Munjal family, had agreed to buyout the entire 26% stake of Honda in Hero Honda for Rs 3,841.83 crore. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
