Company History - Hero MotoCorp
1983 - Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
- The Company was incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles up to 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd. (HCPL).
- The Company entered into a technical-cum-financial collaboration agreement with Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete technical information and know-how and trade secrets and other relevant data.
- Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher indicators, etc.
- 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved for allotment as under:
- (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur Chand Investments (P) Ltd.
- (ii) 31, 20,000 shares to Honda Motor Co. Ltd., Japan and
- (iii) 9, 59,987 shares to friends and association of promoters. Out of the balance 48, 00,000 shares, 2, 40,000 shares were reserved for subscription by the employees of the Company and 96,000 shares by business associates. The remaining 44, 64,000 shares were offered at par for public subscription during November.
- The Company embarked on its 2nd phase of expansion of increasing its installed capacity from 1, 20,000 to 1, 50,000 vehicles per annum by the addition of several critical aluminium and steel components.
- 36, 00,000 rights equity shares issued at par in prop. 3:10.
- The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares.
- Another 3, 00,000 - 15% debentures were allotted to retain oversubscription. The debentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from the date of allotment of the debentures.
- 3, 75,000 rights equity shares issued at par in prop. 3:10.
- The Company introduced a new model "Sleek" during July.
- 850 No. of equity shares forfeited.
- The Company was planning to launch a new model motor cycle-CD 100 SS suitable to semi-rural conditions. In the domestic market the Company was reported to have a market share of 46%.
- 850 forfeited shares reissued.
- The Company proposed to expand the capacity of existing plant at Dharuhera to 2, 40,000 nos. per annum. Another plant with an installed capacity of 1, 50,000 nos. per annum at Gurgaon Industrial Estate was being set up.
- The Company issued 39, 79,500 bonus shares to the existing shareholders in the ratio of 1:4. The Company also issued 28,557 number of fractional coupons representing 14,250 shares against which shares shall be allotted to presenting the same for consolidation and allotment.
- The Company's production and turnover increased to 1, 83,490 motorcycles and Rs.483.85 crores respectively due to growth in demand for two wheelers and declining inflation.
- 14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period up to the year 2004 which includes technology related to models of higher Engine displacement.
- The Company allotted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of capitalisation of General Reserves.
- The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares against which the Shares shall be allotted on presenting the same for consolidation and allotment....
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