Hero MotoCorp rose 1% to Rs 3,172.95 at 9:49 IST on BSE after the company said it launched six of its best-selling bikes in Colombia as part of its target to clock 1.2 million unit sales from global business by 2020.
The announcement was made after market hours on 28 November 2014.
Meanwhile, the BSE Sensex was down 15.22 points, or 0.05%, to 28,678.77.
On BSE, so far 3,310 shares were traded in the counter, compared with an average volume of 42,728 shares in the past one quarter.
The stock hit a high of Rs 3,183.85 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 3,150 so far during the day. The stock hit a 52-week low of Rs 1,907 on 21 February 2014.
The stock had underperformed the market over the past one month till 28 November 2014, rising 3.54% compared with 6.75% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 20.48% as against Sensex's 7.72% rise.
The large-cap company has an equity capital of Rs 39.94 crore. Face value per share is Rs 2.
"Colombia is one of the top two-wheelers market in South America and therefore, it is going to play a significant role as we continue to expand our footprint in the region," Hero MotoCorp Vice Chairman and MD & CEO Pawan Munjal said. "Going forward, we will aim at making Colombia a base for expanding our operations to neighbouring countries in the region," he added.
The two-wheelers rolled out include the 100 cc bikes -Splendor iSmart, Eco Deluxe, and Passion-Pro; the 125 cc Glamour; the 150 cc Hunk and the 225 cc Karizma ZMR. The bikes will be sold in 120 outlets spread across the country. The company plans to expand its distribution network to over 150 outlets in a year's time, Hero MotoCorp said in a statement.
Hero MotoCorp is also setting up a manufacturing plant in Colombia. It also became the first two-wheeler company in Colombia to offer 4-year warranty on all its models.
This July, Hero MotoCorp formed a wholly-owned subsidiary in Colombia and commenced construction of a state-of-the-art manufacturing plant in the country. With a project cost of $70 million, HMCL will invest $38 million in CAPEX, with the rest being utilised as working capital over the next three-year period. The equity investment will be made through HMCL's wholly-owned subsidiary in the Netherlands -HMCL BV, the company said.
The manufacturing plant - spread over 17 acres of land at the Parque Sur Free Trade Zone in Vila Rica - is expected to go on stream by the middle of calendar year 2015 with an initial installed capacity of 78,000 units. This will go up to around 150,000 units by 2017-18. With this, the New Delhi-headquartered Hero MotoCorp will be the first Indian two-wheeler company to have a manufacturing plant in Latin America.
The company added that it plans to launch its operations in Europe by 2015 and in the US by 2016. By the year 2020, the company aims to surpass 100 million units in cumulative production, annual bike and scooter sales of 12 million units. It also plans to have more than 20 manufacturing and assembly plants across the globe with sales in more than 50 countries by that year.
Hero MotoCorp's net profit jumped 58.6% to Rs 763.37 crore on 21.7% growth in total income to Rs 7108.85 crore in Q2 September 2014 over Q2 September 2013.
Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.
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