The Japanese auto giant Honda Motors has raised its stake in the Indian subsidiary by investing a sum of Rs 1,200 crore. The investment has been raised through rights issue in company’s local unit, by passing a resolution that was considered as wholly subscribed by the Japanese car maker. Meanwhile, the speculations are gaining ground that the Indian partner – Shriram Industrial Enterprise Limited (SIEL) – may soon exit the joint venture in the Indian market.
The equity shares of worth of over 20.99 crore were issue by the firm at a price of Rs 10 per share, at a premium price of Rs 47.15 each. The company has already through with the allotment process about two weeks back. At present, Honda Motors has over 95 percent stake in its Indian venture Honda Siel Cars India Limited (HSCIL).
Speaking to ET, a company spokes person said, that the company do not have any comments to maker, as of now. On the other hand, SIEL promoters Siddharth Shriram and his son Krishna Shriram refused to comment on a query of ET, saying, "We would not like to comment on these issues at this stage. I hope you understand."
