Hero Honda promoter raises Rs 900 cr

The country’s largest two-wheeler maker, Hero Honda’s promoter, Hero Investments Private Ltd, had raised Rs 900 crore by pledging shares to Axis Trustee Services Ltd (ATSL).ATSL acted as debenture trustee for non-convertible debentures aggregating to Rs 900 crore raised by Hero Investments Private Ltd (HIPL). To secure the raising, the shares of Hero Honda Motors were pledged by HIPL.  After the pledging of 0.59 per cent stake by HIPL, ATSL’s holding in Hero Honda will increase to 5.4 per cent from 4.8 per cent.

Last week, HIPL had pledged 5.32 per cent stake in Hero Honda with IL&FS Trust Company Ltd raising an estimated Rs 1,585 crore. HIPL is one of the main shareholders of Hero Honda, holding 17.3 per cent stake in the company as on December 31, 2010.crackcrack