Shares of motorcycle giant Hero Honda surged by over 11 per cent in early trade on the BSE on Monday, following Munjals-promoted Hero Group's announcement last week that it will acquire the entire 26 per cent stake held by its Japanese partner, Honda, in the JV company.
Hero Honda shares started the day on a robust note and climbed 11.42 per cent to touch an early-high of Rs 1,871 per piece on the Bombay Stock Exchange (BSE).
Witnessing a similar surge on the National Stock Exchange, the scrip soared by 11.3 per cent to trade at Rs 1,871.80 in the opening trade.
Significant rise in the Hero Honda scrip helped the 30-share barometer Sensex offset its weakness in the early trade. The key index was quoting at 19,778.42, down 86.43 points from previous close at 1033 hours.
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 Honda's 26 per cent stake for an undisclosed amount.