Hero MotoCorp shares under radar after company discloses Munjal family settlement agreement
The company said that the Munjal family agreement pertained to 2016 and there has been no change in the management or control of Hero MotoCorp at present. The agreement was executed between then promoters-- late Santosh Munjal, Renu Munjal, Suman Kant Munjal, Pawan Munjal and Sunil Kant Munjal.
Two-wheeler major Hero MotoCorp Ltd shares declined more than 1 per cent on Wednesday following the release of the details of a family settlement agreement by the group’s promoters.
The stock has corrected more than 7 per cent in August logging losses in seven trading sessions out of 12 so far this month on BSE.
Details of Munjal family agreement
The company on Monday released the details of a family agreement that was signed on 27 July 2016 that led to the exit of family member Sunil Kant Munjal from the group as joint managing director.
India’s major two-wheeler maker mentioned that the details of the past family settlement agreement were released as per the recent amendments in listing regulations that require the subsisting agreements, if any, to be disclosed.
It also mentioned that the agreement pertained to 2016 and there has been no change in the management or control of Hero MotoCorp at present.
The agreement was executed between then promoters-- late Santosh Munjal, Renu Munjal, Suman Kant Munjal, Pawan Munjal and Sunil Kant Munjal.
The settlement agreement was signed for the division of BML Munjal Group entities, including Hero MotoCorp, while the company was not a party to the agreement.
The family members had also reached an understanding over the usage of ‘Hero’ trademark.
Hero MotoCorp shares drop after recent ED raids
Hero MotoCorp shares had tanked more than 5 per cent in the first week of August after the Enforcement Directorate reportedly seized assets including foreign and Indian currencies, gold and jewellery worth Rs 25 crore and incriminating documents following raids at the residence and offices of the company Chairman Pawan Munjal.
The ED registered a case against Pawan Munjal under the Prevention of Money Laundering Act (PMLA). It was alleged that a third party service provider illegally exported foreign currency of around Rs 54 crore to various countries during 2014-15 to 2018-19.
Shares of the company dropped in the second week amid the release of first-quarter financial results for FY 2023-24.
Hero MotoCorp reported nearly 20 per cent growth in consolidated profit at Rs 700.54 crore in the June quarter compared to Rs 585 crore a year ago. Its consolidated revenue rose to Rs 8,851.01 crore in Q1FY24 as against Rs 8,447.54 crore in the year-ago period.
Hero MotoCorp shares were trading at 1.53 per cent lower at Rs 2961.50 apiece on BSE at 11.42 AM.
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