Force Motors has announced that it would sell up to 14.5 per cent stake in its joint venture with Germany's MAN Nutzfahrzeuge for about Rs 300 crore. The move would enable the German auto firm to raise its stake in the JV to 50 per cent.

Experts believe that the proposed change in the equity structure of the JV would take place in two steps. First, Force will sell 14.2% stake to MAN for Rs 300 crore. Through a rights issue, MAN will later fill Rs 250 crore in the JV. Force will abstain from subscribing to the issue. As a result, MAN's stake will go up to 50% from the current 30%.

The deal between the two parties was signed on Tuesday in Munich.

At present, Force Motors holds 70 per cent stake in the JV, MAN Force Trucks Pvt Ltd, while the German firm holds the rest.

In order to widen its footprint in the Indian market, the JV, located at Pithampur, near Indore, in Madhya Pradesh, would start designing and make trucks and bus chassis over the next few months. Earlier in September this year, Force had raised 70% of the equity capital while the remaining 30% came from MAN.