Partition between Hero Group which are owned by Munjal family and Honda motors the leading Japanese automobile firm is going one step further. Hero Honda was the joint venture of Hero Group and Honda Motors for almost 26 years.

Now it has been informed that Foreign Investment promotion board has approved the proposal of Indian promoter to raise money from overseas investors. Indian promoters were planning to raise Rs. 4500-crore from the overseas market. Hero Group needs an approval from Cabinet Committee on Economic Affairs (CCEA).

Hero Group raised money through Hero Investment Private Ltd. This company owns 17.33% share in joint venture.

Hero Group has to pay Rs. 4500-crore to buy the 26% stake of its Japanese partner. After the announcement of this news, the stock price of Hero Honda has jumped up by 3.21%.

Bhadur Chand Investment Private Ltd. owns a stake of 8.67% in Hero Honda. Hero Group is now in discussion with six private equity firms to fund this stake ownership. Munjal Family will invite bids from all companies. Hero Group is also in talk with HDFC to raise loans money.