Brij Mohan Lall Munjal-led Hero Group is undertaking a restructuring of family shareholding in two promoter firms of the country's largest two-wheeler maker Hero MotoCorp.
In a filing to the BSE, Hero MotoCorp said BML Munjal's wife Santosh and his second son Suman will transfer their shares in the two investment companies -- Hero Investments Pvt Ltd (HIPL) and Bahadur Chand Investments Pvt Ltd (BCIPL) -- to other sons Pawan and Sunil.
All the family members are partners of the firm Brij Mohan Lall Om Prakash (BMOP).
The filing said that Suman, who currently holds 21,610 shares representing 71.63% stake in HIPL, will transfer a total of 14,407 shares to Pawan and Sunil.
Out of the total, 7,203 shares, representing 23.88% stake in HIPL, will be in favour of Pawan, while Sunil will get 7,204 shares that also accounts for 23.88% stake, it added.
Post this transaction, all the three brothers will have 23.88% stake each in HIPL. Private equity firms BC India Pvt Investors II and Lathe Investment Pte Ltd will continue to own 19.81% and 8.56% stake respectively in the investment firm.
Similarly, BCIPL will also witness shares changing hands with Suman and Santosh transferring shares to Pawan and Sunil.
Suman, who currently owns 12,800 shares that represents 98.46% stake in BCIPL, will transfer 8,484 shares aggregating 65.26% stake in the promoter firm to Pawan and Sunil.
Santosh will also transfer her entire holding of 150 shares, representing 1.15% stake in BCIPL to sons Pawan and Sunil.
Post this transfer, Pawan and Sunil will hold 33.21% stake each, while Suman will own 33.20% stake on behalf of BMOP in BCIPL. Besides, Suman holds 0.38% on his personal capacity.
Both these two transactions in HIPL and BCIPL will take place "on or about June 5, 2012", the filing said.
HIPL and BCIPL will continue to hold 43.33% and 8.67% stake in Hero MotoCorp, it added.
As per the announcement, there will be no change in the shareholding on the main company -- Hero MotoCorp.
The share transfer exercise comes two years after the Munjal family had announced a family settlement agreement, following which their 26% stake in erstwhile Hero Honda was consolidated in the name of Suman.
He had acquired the stake held by his cousin Vijay Kumar Munjal and uncle Satyanand Munjal in HIPL and BCIPL under a family-settlement agreement.
BML Munjal has five children and the eldest son Raman has expired. Suman is his second son. His third son Pawan is the Managing Director and CEO, while fourth son Sunil is the Joint Managing Director of Hero MotoCorp. The youngest of his children is daughter Geeta Munjal.
