The company said categorically that such a move was never discussed at any level.
"The current media reports about Hero Honda buying stake in Kings XI Punjab is completely baseless and untrue. We have not had any discussion in this regard either," Hero Honda, world's largest two manufacturers, said in a statement.
Earlier today, media reports said that the team had been sold to the Hero Honda Group for a whopping $260 million from its previous owners, actress Preity Zinta, businessmen Ness Wadia, Mohit Burman and Karan Paul.
Initial reports suggest the company has bought a stake in the franchisee but now it has emerged that they have taken over the struggling unit completely, reports said.
According to the reports, Preity Zinta may remain the face of the team and take part in all the promotional campaigns.