Hero MotoCorp exposes family arrangement, Sunil Kant Munjal resigns

Hero Motocrop Update: Hero MotoCorp has reported that Sunil Kant Munjal will step down as the company’s joint managing director. Disclosing the family deal, the company said it has secured an agreement from the promoter. The company has made this information available to the stock exchange through regulatory filings.

Providing details of the promoter-family settlement agreement to the stock exchange, the company said that Sunil Munjal has resigned from the management and control of Hero MotoCorp and has also resigned from the post of joint managing director. As per the agreement, the listed unit will be managed and controlled by the family group of Pawan Munjal, Santosh Munjal, Renu Munjal and Suman Kant Munjal. In its filing, the company said an agreement has also been reached between the family group and Sunil Kant Minjal for the use of the trademark Hero.

According to the company’s regulatory filing, during the settlement, promoter Santosh Munjal, Reno Munjal, promoter and Hero MotoCorp Ltd chairman Pawan Munjal and promoter group member Sunil Kant Munjal all signed the agreement. In July 2016, the parties involved gave their consent to the terms of the agreement. Earlier this agreement was formally signed on 27 July 2016.

As per the results announced by Hero MotoCorp in the April-June quarter, the profit grew by 32% and the company’s profit was Rs 825 crore, while the income from operations was Rs 8767 crore. Recently, Hero MotoCorp has been targeted by investigative agencies. The Enforcement Directorate (ED) had raided the house of company chairman Pawan Munjal last month. The Income Tax Department has already conducted an investigation.

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