Bain Capital to sell shares worth $200 mn in Hero

The PE major is selling nearly 4.3 mn shares in India's biggest maker of motorcycles and scooters at a price range of Rs 2,859.58 to Rs 2,963.30

After selling shares of Rs 1,480 crore in Hero MotoCorp Ltd, private equity company Bain Capital is set to sell $200-million shares (2.2 per cent). Bain will sell nearly 4.3 million shares in India's biggest maker of motorcycles and scooters for Rs 2,859.6-2,963 apiece, according to the term sheet.

Bain holds about 11.5 million shares (5.7 per cent) through its arm BC India Pvt Investor II. Hero shares had closed at Rs 2,957 apiece on Wednesday, down 1.77 per cent on BSE.

In June, Bain had sold 2.8 per cent, or around a third of its holding, for Rs 1,480 crore ($248 million). It had offered a band of Rs 2,582-2,717 a share.

Three years ago, the firm had invested with Singapore's sovereign wealth fund GIC to back the Munjal family for buying out Honda Motor from their joint venture.

Through their private holding arm Hero Investments Pvt Ltd (HIPL), Munjals acquired the 26 per cent stake held by Honda Motor and a minority stake in HIPL was sold later to Bain Capital and GIC to retire the debt.

Last year HIPL was merged with the listed company giving direct equity stake to Bain and GIC. It is learnt that both Bain and GIC had jointly invested about $850 million (3800 crore) in Hero Investments. The PE major held 19.81 per cent stake in Hero Investments Private Ltd.