Mumbai: The largest investor in Hero MotoCorp Ltd sold $300 million (Rs 1830 crore at 1 dollar = 61 rupees) worth of shares in India's biggest maker of motorcycles and scooters on Wednesday, freeing up cash to invest in new sectors.
Brij Mohan Lal, who owns shares through several entities, sold nearly 7 million shares, or a 3.5 per cent stake, through multiple open market transactions, cutting his share to just over 36 per cent from 39.92 per cent.
"(Brij Mohan Lal-led parent Hero Group) will use the sale proceeds to fund new growth avenues available through the government's 'Make in India' initiative," Hero said in a statement.
Analysts expect the funds to be used for expansion into the power and real estate sectors.
The shares were sold in a price range of Rs 2,663.95 to Rs 2,677,65, according to Thomson Reuters data and a source directly involved in the process.
According to the offer's term sheet, the shares had been offered in an indicative price band of Rs 2,664 to Rs 2,720, a discount of as much as 5 percent from its Monday's closing price of Rs 2,805.
Hero's shares fell over 5 per cent ahead of the transaction, after Reuters reported the planned sale.
Kotak Mahindra Capital was the main arranger for the deal.
© Thomson Reuters 2015
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.