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Private equity firm Bain Capital is all set to exit Hero MotoCorp by selling its remaining shares in the auto major through a stock market transaction.
Morgan Stanley has been appointed to manage the deal which is likely to be concluded when markets open on Friday. Bain has just around 1.5 per cent stake, or 29 lakh shares, left in Hero MotoCorp which could be worth around ₹760 crore.
While the companies did not comment, sources close to the development confirmed that the term-sheet has been signed.
Price bandAccording to Reuters, the indicative price band is expected to be between ₹2,570 and ₹2,600. Hero MotoCorps’ share price closed at ₹2,645 a piece on the BSE on Tuesday. Markets were closed on Wednesday on account of Guru Nanak Jayanti. In March 2011, Bain Capital had invested $550 million (₹2,500 crore at the then exchange rate) for an 8.6 per cent stake in Hero Investment Pvt Ltd.
The money was primarily used by the Munjal family-controlled Hero Group to buy out Honda’s 26 per cent stake in Hero Honda Motors Ltd (since renamed Hero MotoCorp). Since then Bain has sold shares in the market twice mopping up ₹4,000 crore.
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