Bain Capital selling Hero MotoCorp shares to raise $116 mn

The US-based PE firm, which picked up an equity stake of 8.6 per cent in Hero MotoCorp in 2008 for around Rs 2,500 crore, has offloaded a major part of its holding and now holds a mere 1.49 per cent.

United States private equity firm Bain Capital is selling shares in Hero MotoCorp Ltd, the world’s largest seller of motorcycles and scooters, to raise $116 million, IFR reported, citing a person close to the deal.

Among the buyers of the shares include Morgan Stanley Asia (Singapore) PTE and Abu Dhabi Investment Authority. Subsequently, the PE firm held 8.5 per cent stake in the motorcycle manufacturer. The transaction, along with two previous deals, will give it a twofold return on an investment made a little over four years ago. It also earned Rs 320 crore dividend since 2011. Bain Capital is selling remaining stake at 1.7 to 2.85 percent discount based on Tuesday price at price band of Rs 2570 a share to Rs 2600 a share. In November past year, Bain sold a 4.27 per cent stake for around Rs 2,500 crore and earlier in June sold 2.84 per cent for Rs 1,481 crore. The Indian markets are shut on Wednesday for a holiday. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.

Shares of Hero MotoCorp were trading at Rs 2,681 each, up 0.01 per cent on BSE in a strong Mumbai market on Frida at 10.59 PM.