Mumbai, Dec. 3: German auto maker MAN Nutzfahrzeuge will hike its stake in the joint venture with Force Motors to 50 per cent. At present, MAN holds a 30 per cent stake in the entity.

In a two-part deal, the German firm will first pick up a 14 per cent stake in the Force venture for Rs 300 crore. Subsequently, it will acquire another 6 per cent through a rights issue for about Rs 250 crore.

The share rejig arrangement propelled the Force Motors scrip 20 per cent on the Bombay Stock Exchange to hit the upper circuit at Rs 74.40.

“Subject to necessary approval, the share ownership of the joint venture company shall be revised so as to have a proportion of 50 per cent each between Force Motors and Man,” Force Motors said in a filing to the BSE.

Force said the chairman would be its nominee, while MAN would nominate the vice-chairman. Besides the chief technology officer, one of the two managing directors of the company will also be a MAN nominee who will be responsible for production, technology and logistics.