In a significant development, Hero MotoCorp Ltd
promoter Brijmohan Lall Munjal pared four per cent stake in the company by
selling seven million equity shares to ‘fund new growth avenues’.
The company in a statement said the BML Munjal-led
Hero Group has divested seven million equity shares in its flagship company
Hero MotoCorp Ltd in a major initiative towards diversification into fast
growth areas.
According to information available with BSE, the
promoter stake in Hero MotoCorp stood at 39.92 per cent at the end of December
2014.
Following the sale, the over $5-billion Hero Group
still holds a significant stake of over 36 per cent in the company, the
statement added.
Elaborating on the funds’ use, the company said:
“The group will use the sale proceeds to fund new growth avenues available
through the Government’s ‘Make in India’ initiative.”
The Prime Minister’s ‘Make in India’ platform has
opened up new vistas, some in very high growth areas, and the Hero Group — with
its experience, scale of operations and brand equity — is uniquely placed to
leverage these emerging opportunities, it said.
On the focus on its core business, the company said:
“The Hero Group remains strongly committed to its core two-wheeler business,
where it sees enormous potential, both in India and overseas.”
Hero MotoCorp sold 6.64 million two-wheelers in
2014, including over 200,000 units in global markets.
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