Bain exits India's Hero Motocorp for $117m

The GP sold 3 million shares in Hero in an open market transaction, according to bulk deal data, with the shares priced at INR2,591.25. An investment unit of Morgan Stanley picked up 1.7 million shares on the same day at INR2,590.

Hero Honda was created in 1984 as a joint venture between India's Hero Group, controlled by the Munjal family, and Japan's Honda Motor. Hero Group wanted to buyout its partner but was supposedly wary of executing the transaction through leverage and the capital markets for fear of a sell down. Private equity involvement was a logical alternative.

Bain came in and the Munjal family gained financial backing for its portion of the transaction from GIC Private. In March 2011, Hero Investments paid $851 million for Honda's 26% interest in the joint venture. Bain took the majority of the equity.

In 2013, when Hero Motocorp merged with Hero Investments, Bain took an 8.58% stake in the combined company, while GIC owned 3.71%. Bain later made a part exit, selling 5.6 million shares for a total of INR14.8 billion.

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