Hero MotoCorp gains as RBI nod for hike in FII limit

The RBI has notified that FIIs/ RFPIs can now invest up to 49% of the paid up capital of Hero MotoCorp.

Hero MotoCorp is trading higher by 1.2% at Rs 3,082 on National Stock Exchange (NSE) after the Reserve Bank of India (RBI) permitted foreign investors to buy up to 49% of the paid-up capital of the company.

The stock opened at Rs 3,105 and touched a high of Rs 3,109 on NSE. A combined 199,709 shares changed hands on the counter till 0955 hours on NSE and BSE.

The RBI had notified that foreign institutional investors (FIIs)/ Registered Foreign Portfolios Investors (RFPIs) could now invest up to 49% of the paid up capital of Hero MotoCorp (Earlier Hero Honda Motors) under the Portfolio Investment Scheme.

The decision follows passage of a special resolution at board of directors and shareholders to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs.

As on September 30, 2014, FIIs held 34.34% stake in two-wheeler manufacturer, the shareholding pattern data showed.

Meanwhile, the company said, driven by sharp, distinct and robust positioning, both scooters – Hero Pleasure and Hero Maestro – have been on a growth path.

“In fact, in the festive month of October, we are confident, of clocking over 90,000 units of scooters in retail sales – which is going to be Hero’s all-time scooter retail sales for any month”, it added.