The last leg of Hero Group's buyout of Honda Motors' 26% stake in the 26 year old joint venture Hero Honda Motors Ltd is now complete. The Cabinet Committee on Economic Affairs approved a proposal for INR 4,500 crore foreign direct investment in Hero Investments Pvt Ltd by two private equity firms BC India Investors II, part of Bain Capital and Lathe Investment Pvt Ltd.

HIPL, the investment arm of Hero Group is one of the two main investors in Hero Honda, the country's largest two wheeler maker. Post buy out of Honda's 26% equity for INR 3,842 crore, HIPL's stake in the two-wheeler maker stands at 43.33%.

The Hero Group expects to use the funds raised from the PE firms to retire part of its debt raised by HIPL recently for financing the Honda stake buyout.

(Sourced from BL)