Hero Honda skids over 5% on JV termination buzz

MUMBAI: Hero Honda Motors slipped over five per cent on the Bombay Stock Exchange today, amid media reports that Hero Group's board has approved termination of joint venture with Honda Motors.

Continuing its losing streak for the third straight session shares of Hero Honda plunged 5.40 per cent to close at Rs 1,621.30 on BSE. During the day, the stock had fallen 9 per cent to touch a two month low of Rs 1,559.

On the National Stock Exchange as well, the two-wheeler major suffered losses and settled at Rs 1,624, down 5.18 per cent from the previous close.

According to reports, Hero Group's board has approved buying Honda Motor Company's 26 per cent stake in Hero Honda Motors for USD 1 billion to USD 1.2 billion, which is almost half the current market value of the stake.

Hero Group, promoted by the Munjal family, will also pay Honda Rs 2,300 to Rs 2,400 crore over three-four years as royalty to source technology from the Japanese auto maker, the report added.

In terms of volume, over 30 lakh shares of the company were traded on the two bourses.

Meanwhile, the BSE Sensex ended at 19,647.77, down 151.42 points.