Hero MotoCorp to pump in Rs 700 cr in Hero FinCorp Ltd

On Monday, the nation's biggest two-wheeler maker, Hero MotoCorp, told the media that its board has permitted to pump in Rs 700 crore in Hero FinCorp Ltd (HFCL).

The investment is subject to the implementation of definitive documents and completion of specific conditions customary to dealing of this nature, the two-wheeler giant said in a regulatory filing.

A non-banking financial firm, HFCL mainly deals in financing retail and corporate customers through products comprising term loans, two-wheeler financing, bill discounting, working capital loans, loans against property, leasing, etc.

HFCL is in the process of raising Rs 2,000 crore via private placement for its business objectives. Hero MotoCorp's investment of Rs 700 crore is towards participation in this capital raise round, it said. Before the planned investment, Hero MotoCorp's shareholding in HFCL is at 41.2%. The exact shareholding of Hero MotoCorp in HFCL post the investment will be decided upon completion of capital raise round by HFCL, as per the company.

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