Hero Honda Says their Promoter Co. HIPL Annulled 17.33% Shares from Investors
Hero Honda recently stated that Hero Investments, their promoter group had revoked about 17.33% shares in the company, which were pledged to 3 other investors. While the two wheeler manufacturer did not disclose the price at which the shares were annulled, according to the closing rates on the 3 days during when these transactions took place, HIPL is projected to have purchased the shares back for a total of INR 6,150 crores.
According to the filing on the BSE, the company annulled a 3,46,12,460 shares in 3 different transactions from June 7 to June 10. The promoter group Company annulled 1,19,35,331 shares from IDBI Trusteeship and IL&FS Trust Co., and 1,07,41,798 shares from Axis Trusteeship, according to Hero Honda. Following this transaction, HIPL stakes was decreased to 2.60% in Hero Honda.
Following the split from JV partner Honda, the stake of HIPL in Hero Honda was raised to 43.33% early this month, compared to the 17.33% stake it had in December, 2010. The Economic Affairs, Cabinet Committee had approved proposal for INR 4,500 crore as FDI in HIPL.
Hero Group had stated earlier that 2 private equity companies will together acquire a total of 29% stake in the company for INR 3,650 crores.