A promoter entity of Hero MotoCorp divested its equity holding in the two-wheeler major by selling shares worth Rs 1,910 crore to another promoter firm in an open market transaction.
Brij Mohan Lall Om Prakash (BMOP), a partnership firm of the promoter family members, sold a total of 57,54,744 shares of the company, according to bulk deal data released by the stock exchanges.
The shares were offloaded on an average price of Rs 3,319 apiece, totalling to Rs 1,909.99 crore.
Another promoter entity Bahadur Chand Investments picked up 48,80,988 scrips of Hero MotoCorp for Rs 1,620 crore.
The transaction follows announcement of an ownership realignment at the world’s largest two-wheeler manufacturer, under which Sunil Kant Munjal, younger brother of the company’s chief Pawan Munjal, will step down from the board when his tenure as joint managing director ends on August 16.
The younger sibling will focus on new business interests and some other group companies under the realignment, which was announced late last month and came months after Hero Group patriarch Brijmohan Lall Munjal’s death in November last year.
In December 2010, the Hero Group and Honda had agreed to end their 26-year-old relationship, with the Indian partner agreeing to buy out the latter’s 26 per cent stake in Hero Honda for Rs 3,841.83 crore.
In March 2011, two private equity firms, BC India Investors II and Lathe Investment Pvt Ltd, together picked up a 29 percent stake in Hero Investments Pvt Ltd (HIPL) for Rs 3,650 crore.