UPDATE 1-GS Yuasa to raise $397 mln in battery drive

TOKYO, July 13 (Reuters) - Japanese battery maker GS Yuasa Corp (6674.T) said on Monday that it plans to issue new shares to raise up to 36.7 billion yen ($397 million) to invest in lithium-ion battery development.

GS Yuasa, which plans to make hybrid car batteries with Honda Motor Co (7267.T) next year, plans to issue 40 million shares in a public offering at the end of July.

It could also issue an additional 6 million shares in an overallotment option. (Reporting by Mayumi Negishi)