New Delhi: The promoter of Hero Honda, Hero Investments Private Ltd (HIPL), has pledged further shares of the company to IL&FS Trust Company Ltd, raising an estimated Rs200 crore.
In a filing to the Bombay Stock Exchange, Hero Honda said HIPL has pledged an additional 13,18,653 shares aggregating to 0.66% stake in the company on 7 March.
On the basis of the closing price of the company’s shares on the BSE on 7 March, the value of the pledge stake is around Rs200 crore.
With the transaction, IL&FS Trust Company has now increased its stake in the two-wheeler maker to 5.98% from 5.32% before. In the first week of March, HIPL had raised an estimated Rs1,585 crore by pledging 5.32% stake with IL&FS Trust Co.
On 9 March, HIPL had also raised Rs900 crore by pledging shares to Axis Trustee Services Ltd.
HIPL is one of the main shareholders of Hero Honda, holding 17.33% stake in the company as on 31 December 2010.
The BM Munjal led Hero Group is raising fund to finance the buyout of Honda’s 26% stake in Hero Honda for Rs3,841.83 crore.
The group also said it will raise funds from private equity firms, including Bain Capital and Lathe Investment, estimated to be around Rs 4,500 crore to finance its buyout by selling stake in HIPL.
It has already sought government clearance to bring in foreign investment of up to Rs 4,500 crore in HIPL.
Shares of Hero Honda were trading on Wednesday at Rs 1,514.20 in the late afternoon trade on the BSE, down 0.43% from its previous close.