The country's largest two-wheeler maker Hero MotoCorp on Monday said its board has approved to invest up to Rs 700 crore in Hero FinCorp Ltd (HFCL). The investment is subject to execution of definitive documents and completion of certain conditions customary to a transaction of this nature, the two-wheeler major said in a regulatory filing.

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A non-banking financial company, HFCL primarily deals in financing retail and corporate customers through products including two-wheeler financing, term loans, working capital loans, loan against property, bill discounting, leasing, etc. HFCL is in the process of raising up to Rs 2,000 crore through private placement for its business purposes. Hero MotoCorp's investment of Rs 700 crore is towards participation in this capital raise round, it stated.

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Prior to the proposed investment, Hero MotoCorp's shareholding in HFCL stands at 41.2 percent. "The exact shareholding of Hero MotoCorp in HFCL post the investment, will be determined upon completion of capital raise round by HFCL," the company said.