Promoters of world's largest two-wheeler maker by volume Hero MotoCorp Ltd has divested another tranche of their holding in the company for about Rs 944.8 crore (approximately $152 million) on Thursday through an open market transaction on NSE, as per a stock market disclosure.
The stake sale comes a day after the promoters, the Munjal family, sold about 3.5 per cent stake in the company for Rs 1,864 crore (nearly $300 million) as part of their effort to generate cash to diversify into new businesses.
Although the promoters did not give details on their next moves, media reports say they are in the race to buy a stake in Pipavav Defence, as part of a move into manufacturing of defence equipment. They are said to be competing with Mahindras to buy a stake in the firm.
The promoters’ holding has now shrunk to 34.6 per cent from 39.9 per cent as of December 31, 2014.
Other shareholders of Hero MotoCorp include Singapore's sovereign fund GIC, which holds 2.78 per cent stake and is the single largest institutional investor in the firm. It had co-invested with PE firm Bain Capital a few years ago. This was tied with a parallel deal where Munjals bought out long term partner Honda's stake in the JV.
Both Bain and GIC had part exited the company last year.
Hero MotoCorp sold 6.64 million two-wheelers in the calendar year 2014, including over 2,00,000 units sales on the global market.
Hero MotoCorp shares were trading at Rs 2,672.70, up 0.21 per cent at 11:10 AM on BSE in weak Mumbai market on Friday.
(Edited by Joby Puthuparampil Johnson)
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