Hero MotoCorp shares gain on plans to set up new facility

Shares of Hero MotoCorp today rose by nearly 2 per cent after the company entered into a pact with Government of Andhra Pradesh for setting up a two-wheeler manufacturing plant in Chittoor district.
Hero MotoCorp's scrip ended 1.74 per cent higher at Rs 2,839.95 on the BSE. During the day, it gained 2.95 per cent to Rs 2,873.75.
At the NSE, the stock went up by 1.26 per cent to end at Rs 2,825.55.
Under the memorandum of understanding, the two-wheeler maker will invest Rs 1,600 crore on the main plant at Satyaveedu that will produce 1.8 million two wheelers in a phased manner.

Another Rs 1,500 crore will be invested on ancillary units, according to Hero General Manager (Corporate) Rakesh Vashisht.
The state government has allotted 600 acres of land to Hero for the plant and the allotment letter was handed over to Vashisht by Industries Principal Secretary J S V Prasad in the presence of Chief Minister N Chandrababu Naidu, Union Ministers P Ashok Gajapathi Raju (Civil Aviation) and Piyush Goyal (Power) and others in Hyderabad yesterday.