The shareholders of the country's largest two wheeler maker Hero Honda have approved the changing of the name of the company to Hero MotoCorp Ltd, post the exit of Japan's Honda from the firm.
At an extraordinary general meeting of the company held last Friday, the shareholders approved a proposal to change the name to Hero MotoCorp Ltd from Hero Honda Motors Ltd.
Last December, the Hero Group and Honda had agreed to end their 26-year-old relationship, with the Indian partner agreeing to buy out Honda's 26 percent stake in Hero Honda for Rs 3,841.83 crore.
The two partners had, however, signed a new licencing agreement under which Hero Honda will pay Honda 45 billion yen (about Rs 2,450 crore) till 2014.
"As a result of the separation of the joint venture partners i.e. Hero Group and Honda and subsequent to the sale of entire shareholding by Honda to Hero Investments Private Limited, the word 'Honda' needs to be dropped from the name of the company, i.E. Hero Honda Motors Ltd," the company said in its communication to shareholders for the EGM.
Explaining further about the new name, the company said: "The word 'MotoCorp' would help in projecting the company a global motor vehicle company having a global footprint in the motor vehicle industry."
Hero Honda scrips closed the day at Rs 1,735.60 per share on the BSE, up 0.31 percent from the previous close.