"We are planning to bring in additional equity through fund investors to raise resources for replacing two-stroke motorcycles with four-stroke models," Escorts group chairman Rajan Nanda, said.

Asked whether Yamaha has agreed to dilute their stake, Nanda said, "We have informed them about the proposal. We are meeting in Singapore on September 28 to finalise the details."

Declining to reveal the name of the investor or the price at which the stake was being offered, Nanda said Escorts and Yamaha would also have a shareholders agreement to support each other under the new dispensation.After the equity infusion, the stake of both Escorts and Yamaha in the venture would come down to 37.5 per cent each. At present Escorts Yamaha has a paid up capital of Rs 27 crore.