The country's largest two-wheeler maker Hero Honda today said its promoter Hero Investments has raised Rs 900 crore by pledging shares to Axis Trustee Services.
In a filing to the Bombay Stock Exchange, the company said Axis Trustee Services (ATSL) acted as debenture trustee for non-convertible debentures aggregating to Rs 900 crore raised by Hero Investments (HIPL).
"To secure the said raising, the shares of Hero Honda Motors were pledged by HIPL," it added.
After the pledging of 0.594% stake by HIPL, ATSL's holding in Hero Honda will increase to 5.38% from 4.79% before, it added.
Last week, HIPL had pledged pledged 5.32% 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 17.33% stake in the company as on December 31, 2010.
The BM Munjal-led Hero Group has been looking to raise funds to finance its Rs 3,841.83 crore buyout of the 26% stake of Honda from their joint venture, Hero Honda.
Yesterday, the group had said it would pay Rs 739.97 per share to Honda as part of their agreement to end the 26-year-old joint venture.
The group also said it will raise funds from private equity firms, including Bain Capital and Lathe Investment, estimated to be around Rs 4,500 crore to finance its buyout by selling stake in HIPL.
It has already sought government clearance to bring in foreign investment of up to Rs 4,500 crore in HIPL.
Hero Honda scrips closed the day at Rs 1,533.45 per share on the BSE, up 1.01% from the previous close.
