BackHero MotoCorp falls 4.5% after report of promoter stake sale
Hero MotoCorp witnessed a series of block deals on Wednesday, in which around 71 lakh shares or 3.5% stake in the company changed hands
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Mumbai: Hero MotoCorp Ltd witnessed a series of block deals on Wednesday, in which around 71 lakh shares or 3.5% stake in the company changed hands, CNBC TV18 reported. Details of buyers and sellers were not available.
Shares of Hero MotoCorp Ltd had opened sharply lower after a Reuters report said the promoters of India’s largest two-wheeler maker would sell 3.5% in the company later in the day. At 11.34am, Hero MotoCorp shares were trading 4.50% lower at ₹ 2,679.85, while the benchmark BSE Sensex was up 0.61% at 29,312.48 points. The stock hit an intraday low of 2669.05 and fell as much as 4.9%, its sharpest decline since 9 July 2014.
“Controlling shareholders of Hero MotoCorp, India’s biggest maker of motorcycles and scooters, plan to sell $300 million worth of shares later in the day", Reuters had reported, citing a term sheet.
Brij Mohan Lal Om Prakash would sell nearly 70 lakh shares or 3.5% stake in the open market and the shares are offered at an indicative price band of ₹ 2,664-2,720, a discount of as much as 5% from its Monday’s closing price of ₹ 2,805, the report said.
Currently, promoters hold 39.92% stake in the company.
Kotak Mahindra Bank Ltd and Barclays Plc are the bankers to the deal, the report added.
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