Press Information Bureau

Government of India

Ministry of Finance

 

29-March-2011 12:43 IST

M/s Hero Investments Private Limited to receive Rs.4500 crore as Foreign Direct Investment

The Cabinet Committee on Economic Affairs today approved the proposal of M/s Hero Investments Private Limited to receive FDI amounting to Rs.4500 crore approximately in the investing company from M/s Bain Capital and M/s Lathe Investment Private Limited. M/s Hero Investment Private Limited and Hero Group company have entered into Memorandum of Understanding with M/s Honda Motors, Japan to acquire 26 per cent equity shares in M/s Hero Honda Motors Limited from M/s Honda Motors.

The proposal was recommended by Foreign Investment Promotion Board in February, 2011.

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 SH/SK/SM

Foreign direct investment approval permits foreign investors to inject capital into an Indian holding company to acquire a minority stake. Approval was granted for inbound foreign direct investment into M/s Hero Investments Private Limited from specified foreign investors to capitalise the investing company and enable its acquisition of a minority equity stake in a domestic operating company previously held by a foreign parent; the transaction followed an earlier governmental recommendation and constitutes regulatory clearance for the capital injection and share purchase.