Hero Honda scrip up 18

Shares of motorcycle giant Hero Honda surged by over 11 per cent in early trade on the BSE on Monday following Munjals-promoted Hero Groups announcement last week that it will acquire the entire 26 per cent stake held by its Japanese partner Honda in the join venture company.

Hero Honda closed at Rs 1,981.20 per share,up 17.99 per cent on the Bombay Stock Exchange.

In the 26-year old joint venture Hero Honda both Hero Group and Honda had 26 per cent stake each.

As part of a new licensing agreement with Honda,the Hero Group will buy Hondas 26 per cent stake for an undisclosed amount.

More clarity on the deal is emerging. It appears Hero is getting the stake at a good discount, said a dealer.