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B M Munjal makes 3 sons' stake equal in Hero promoter firms

BS Reporter  |  New Delhi 

The Brij Mohan Lall Munjal-led Hero Group has initiated a process to restructure family shareholding in two promoter firms of the country’s largest two-wheeler maker, Hero MotoCorp Ltd.

After the restructuring, B M Munjals’ three sons will have equal holding in the promoter firms, Hero Investment Pvt Ltd (HIPL) and Bahadur Chand Investments Pvt Ltd (BCIPL). HIPL and BCIPL hold 43.33 and 8.67 per cent, respectively, in Hero MotoCorp.

In a filing with the BSE, the company said B M Munjal’s wife, Santosh, and his second son, Suman Kant, will transfer some of their shares in the promoter firms to Pawan Kant Munjal and Sunil Kant Munjal.

According to the statement, Suman Munjal, who holds 21,610 shares representing 71.63 per cent stake in HIPL, will transfer 14,407 shares to his brothers. While Pawan Munjal will get 7,203 shares representing 23.88 stake in HIPL, Sunil Munjal with 7,204 shares will also gain a holding of 23.88 per cent.

After this transaction, all the three brothers will have 23.88 per cent stake each in HIPL. Private equity firms BC India Pvt Investors II and Lathe Investments Ltd will continue to own 19.81 and 8.56 per cent stake, respectively, in the investment firm.

Similarly, BCIPL will also witness shares changing hands.

Suman Munjal, who owns 12,800 shares (98.46 per cent stake) in BCIPL, will transfer 8,484 shares (65.26 per cent stake) to his brothers, while Santosh will transfer her entire holding of 150 shares, representing 1.15 per cent stake.

After this transfer, Pawan Munjal and Sunil Munjal will hold 33.21 per cent stake each, while Suman will own 33.20 per cent on behalf of a family partnership firm, Brij Mohan Lall Om Prakash (BMOP), in BCIPL. Besides, Suman holds 0.38 per cent in his personal capacity.

Both these transactions would take place by June 5, the filing said. There will be no change in the shareholding in the main company, Hero MotoCorp, it added.

The share transfer exercise comes two years after the Munjal family had announced a family settlement agreement, following which their 26 per cent stake in erstwhile Hero Honda was consolidated in the name of Suman Munjal. He had acquired the stake held by his cousin Vijay Kumar Munjal and uncle Satyanand Munjal in HIPL and BCIPL under a family-settlement agreement.

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First Published: Tue, May 22 2012. 01:08 IST