Hero Honda promoter group rejigs shareholding

19 May 2010

The promoters of Hero Honda are restructuring their shareholding with Suman Kant Munjal acquiring 26 per cent through two investment companies, reports CNBC-TV18.

Suman Kant Munjal proposes to acquire 26 per cent in Hero Honda Motors through the acquisition of 3,46,12,460 shares comprising a 17.33-per cent equity stake through Hero Investments Pvt Ltd and 1,73,06,250 shares comprising 8.67 per cent stake in the company through Bahadurchand Investments Pvt Ltd.

The acquisition is an indirect acquisition of shareholding / voting rights in the target company by Suman Kant Munjal, Hero Honda Motors said in a filing with the Bombay Stock Exchange (BSE).

The proposed acquisition is an inter se transfer of shares among qualifying promoters in terms of SEBI regulations on subtantial acquisition/takeovers, the company said in its stock exchange filing.
 
The shares are being transferred by Vijay Kumar Munjal and Satyanand Munjal, partners of Brij Mohanlal Om Prakash, who currently hold 75 per cent stake and 20 per cent stake, respectively, in the partnership firm HIPL, on behalf of BMOP.

Suman Kant Munjal, after the acquisition, will hold 95 per cent shares / voting rights in HIPL, on behalf of BMOP.

The transfer of shares is likely to be done at Rs 0.80 per share on or about 26 May.

These transfers are within the promoter group and will not affect the overall promoter holding of the company which is currently at 54.96 per cent, according to BSE website.