The promoter of Hero Honda, Hero Investments Private Ltd (HIPL) has pledged further shares of the company to IL&FS Trust Company Ltd, raising an estimated Rs 900 crore.
HIPL has pledged an additional 5.2 million shares aggregating to 2.60% stake in the company on April 13, Hero Honda Motors said in a filing to the Bombay Stock Exchange (BSE).
On the basis of the closing price of the company's shares on the BSE on April 13, of Rs 1,735, the value of the pledge stake is around Rs 902 crore.
HIPL is one of the main shareholders of Hero Honda, holding 43.33% stake in the company as on March 31, 2011. With the transaction, total shares pledged to total no of shares held by the entity in the company increased to 46.01%.
Hero Honda scrips closed the day at Rs 1,777.20 per share on the BSE, down 5% from the previous close.