Hero MotoCorp shares tank 5% as promoter divests stake

Shares of Hero MotoCorp plunged 5 per cent today, eroding Rs 2,851.23 crore from its market valuation, as promoter Hero Group divested 4 per cent stake for an estimated over Rs 1,800 crore in the company to fund diversification into 'new growth avenues'.
The stock tanked 5.09 per cent to settle at Rs 2,663.45 on the BSE. During the day, it lost 5.74 per cent to Rs 2,645.05.
At the NSE, it was down 4.90 per cent to Rs 2,667.50 at close.
The company's market capitalisation dipped by Rs 2,851.23 crore to Rs 53,185.77 crore.
The stock was the top loser among the blue-chips on both Sensex and Nifty.

On the volume front, 9.06 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.

"In a major initiative towards diversification into fast growth areas, the BML Munjal-led Hero Group has divested seven million equity shares in its flagship company Hero MotoCorp Ltd," Brij Mohan Lall Munjal-led Hero Group said in a statement.
Following the sale of seven million equity shares, the over USD 5 billion Hero Group still holds a significant stake of over 36 per cent in the company, the statement added.
According to information available with BSE, the promoter stake in Hero MotoCorp stood at 39.92 per cent at the end of December 2014.

While, the group did not to share the details of the transaction, based on the closing price of Rs 2,663.45 per scrip of Hero MotoCorp on BSE today, the transaction would be value at approximately Rs 1,864 crore.