When share market at the Bombay Stock Exchange closed on Tuesday, it had suffered a tremendous downfall, thanks to the Hero-Honda split. The share which was priced Rs 1518.15 on Tuesday morning was available at Rs 739.97 at the end of the day following the split between Hero Motorcycles and Honda Motors.

The Hero group then declared its plans to acquire all the 26% stakes owned by Honda Motor Co at a price of 739.97 per share, and pay a total of 3,833crore, and end all connections with Japanese automaker- Honda.

Hero group has backing from two private equity firms- Bain capital, and Government of Singapore Investment Corporation(GIC) which would raise 3,700crore through issue of fresh shares for Hero Investment Private Ltd (HIPL) which would own 26% stake of Honda, and its old share of 17.33% in Hero Honda. The two private equity firms were the only two which were interested in these transactions, and will be owners of little over 12% via HPIL.