Hero MotoCorp controlling shareholders to sell shares worth US $300 million

Hero MotoCorp's controlling shareholders on Wednesday plan to sell US $300 million worth of shares in the motorcycles and scooters manufacturer, according to a term sheet seen by Reuters.

Brij Mohan Lal Om Prakash would sell nearly 7 million shares in Hero MotoCorp in open market transactions on Wednesday, the term sheet for the deal showed.

The block deal, if successful, would pare the promoters' stake to 36.92 percent from 39.92 percent.

The shares are offered at an indicative price band of Rs 2,664 to Rs 2,720, the term sheet showed, a discount of as much as 5 per cent from its Monday's closing price of Rs 2,805.

Kotak and Barclays are the bankers to the deal, the term sheet added.

Hero MotoCorp's scrip was trading at Rs 2675.00 a piece, down 131.25 points (or 4.68 per cent), on the Bombay Stock Exchange (BSE) at 12:01 pm.

(Reuters)