Hero MotoCorp gains on plans to set up new facility

The company plans to set up a facility in Andhra Pradesh to produce 1.8 million two-wheelers annually

Shares of Hero MotoCorp were nearly 3% up at Rs 2,866, after hitting a 52-week high of Rs 2,874, as the company announced it would set up an ultra-modern manufacturing facility with a capacity to produce 1.8 million units annually in Andhra Pradesh to meet the growing demand for its two-wheelers.

The Andhra Pradesh government has offered 600 acres of land to the company at Madannapadu village in Satyavedu mandal of Chittoor district near the Tamil Nadu borders.

The government has also extended a whole set of incentives with the major ones being waiver of value-added tax (VAT) and land at a nominal cost.

The stock opened at Rs 2,806 and touched a high of Rs 2,874 so far. Over 394,000 shares were traded on both the stock exchanges so far.