Hero MotoCorp, India's largest two-wheeler maker, on Wednesday said it has acquired 17.49 lakh shares, constituting around a 60 per cent stake, in its joint venture with Italian firm Magneti Marelli.
Hero MotoCorp, India's largest two-wheeler maker, on Wednesday said it has acquired 17.49 lakh shares, constituting around a 60 per cent stake, in its joint venture with Italian firm Magneti Marelli.
Financial details, however, were not immediately available.
Hero MotoCorp has subscribed to a total of 1,749,999 equity shares of face value Rs 10 in the joint venture - HMC MM Auto Ltd - constituting a 60 per cent holding in it, the two-wheeler maker said in a filing to the BSE.
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"The purpose of the joint venture is to, amongst others, sell, distribute and market complete two wheeler fuel injection systems or components parts thereof," the statement said.
Earlier this month, the partners - Hero Motocorp and Magneti Marelli - had announced plans to invest $27 million in the JV over the next 10 years. The JV is targeting sales of around $100 million in the first five years.
The partners had said they would invest $8.5 million in ratio of 60:40 in the JV over a period of three years.
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Magneti Marelli, which designs and produces advanced systems and components for the automotive industry around the globe, reported a turnover of 5.8 billion Euros in 2012.
Shares in Hero MotoCorp, on Wednesday, ended at Rs 2,169.75 apiece on the BSE, down 1.51 per cent from the previous close.
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