Hero MotoCorp fell 1.21% to Rs 2,399.50 at 13:41 IST on BSE, extending yesterday's 3.76% fall triggered by US-based Erik Buell Racing, in which the company held a 49% stake, shutting operations.
Hero MotoCorp made the announcement before trading hours yesterday, 16 April 2015. Shares of Hero MotoCorp fell 3.76% to Rs 2,428.85 on that day. The stock has fallen 4.93% in two trading sessions from Rs 2,523.85 on Wednesday, 15 April 2015.
Meanwhile, the BSE Sensex was down 125.34 points, or 0.44%, to 28,540.70.
On BSE, so far 18,000 shares were traded in the counter, compared with an average volume of 62,480 shares in the past one quarter.
The stock hit a high of Rs 2,430 and a low of Rs 2,383.20 so far during the day. The stock hit a record high of Rs 3,271.80 on 1 December 2014. The stock hit a 52-week low of Rs 2,110 on 9 May 2014.
The stock had underperformed the market over the past one month till 16 April 2015, falling 7.64% compared with 0.80% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 16.16% as against Sensex's 1.93% rise.
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The large-cap company has an equity capital of Rs 39.94 crore. Face value per share is Rs 2.
Erik Buell Racing, Inc. a Delaware corporation (EBR), in which Hero MotoCorp has an equity investment, and EBR's subsidiary Erik Buell Racing LLC, a limited liability company organized in Wisconsin (EBR LLC), has filed an Assignment for Benefit of Creditors under Chapter 128 of the Wisconsin Statutes, which is similar to the federal bankruptcy law of the United States of America. Both EBR and EBR LLC have also ceased to undertake any operations, Hero MotoCorp said in a statement.
Hero MotoCorp had acquired 49.2% stake in EBR in 2013 for $25 million and had plans to market its products in the US through the EBR network.
Hero MotoCorp said that with strong in-house research and development (R&D) capabilities, it remains confident that its future product line-up would not be affected despite EBR ceasing operations.
Hero MotoCorp further added that its Centre for Global Innovation, Research & Design coming up at Kukas on the outskirts of Jaipur in Rajasthan is expected to commence operations in financial year 2015-2016. It will have around 600 engineers from India and around the world. Hero MotoCorp last year hired Dr. Markus Braunsperger from BMW, Germany as HMC's Chief Technology Officer (CTO). The company also brought in Markus Feichtner from AVL to lead the Engine Design & Development team, the company said.
Hero MotoCorp reported 11.1% growth in net profit to Rs 582.98 crore on 0.8% decline in net sales to Rs 6792.51 crore in Q3 December 2014 over Q3 December 2013.
Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.
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