By Abhishek Vishnoi
Mumbai (Reuters) - The largest investor in Hero MotoCorp Ltd
Brij Mohan Lal, who owns shares through several entities, sold nearly 7 million shares, or a 3.5 percent stake, through multiple open market transactions, cutting his share to just over 36 percent from 39.92 percent.
"(Brij Mohan Lal-led parent Hero Group) will use the sale proceeds to fund new growth avenues available through the government's "Make in India" initiative," Hero said in a statement.
Analysts expect the funds to be used for expansion into the power and real estate sectors.
The shares were sold in a price range of 2,663.95 rupees to 2,677,65, according to Thomson Reuters data and a source directly involved in the process.
According to the offer's term sheet, the shares had been offered in an indicative price band of 2,664 rupees to 2,720 rupees, a discount of as much as 5 percent from its Monday's closing price of 2,805 rupees.
Hero's shares fell over 5 percent ahead of the transaction, after Reuters reported the planned sale.
Kotak Mahindra Capital was the main arranger for the deal.
(Additional reporting by Dipika Lalwani; Editing by Anand Basu and Clara Ferreira Marques)
