Hero Motors files draft papers for Rs 9 billion IPO
ECONOMY & POLICY

Hero Motors files draft papers for Rs 9 billion IPO

Hero Motors Ltd, the auto-components arm of the Hero Motors Company (HMC) Group, has submitted preliminary documents to the Securities and Exchange Board of India (Sebi) to raise Rs 9 billion through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the IPO will consist of a fresh issue of equity shares worth Rs 5 billion and an Offer-For-Sale (OFS) of shares valued at Rs 4 billion by the company's promoters.

The OFS will include Rs 2.5 billion worth of shares from O P Munjal Holdings and Rs 750 million each from Bhagyoday Investments and Hero Cycles.

The company is considering a pre-IPO placement of Rs 1 billion. If this placement occurs, the size of the fresh issue will be reduced accordingly.

The proceeds from the fresh issue will be allocated as follows: Rs 2.02 billion for debt repayment and Rs 1.24 billion for purchasing equipment needed to expand the company's facility in Gautam Buddha Nagar, Uttar Pradesh.

Hero Motors is a leading automotive technology company in India, specialising in designing, developing, manufacturing, and supplying advanced powertrain solutions to automotive OEMs in the United States, Europe, India, and the ASEAN region. The company offers both electric and non-electric powertrains for various vehicle categories, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.

Operating in two segments "powertrain solutions and alloys and metallics" Hero Motors has six manufacturing facilities across India, the United Kingdom, and Thailand. The company reported a revenue of Rs 10.64 billion from operations in the fiscal year 2024.

ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers for the IPO. (ET)

Hero Motors Ltd, the auto-components arm of the Hero Motors Company (HMC) Group, has submitted preliminary documents to the Securities and Exchange Board of India (Sebi) to raise Rs 9 billion through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the IPO will consist of a fresh issue of equity shares worth Rs 5 billion and an Offer-For-Sale (OFS) of shares valued at Rs 4 billion by the company's promoters. The OFS will include Rs 2.5 billion worth of shares from O P Munjal Holdings and Rs 750 million each from Bhagyoday Investments and Hero Cycles. The company is considering a pre-IPO placement of Rs 1 billion. If this placement occurs, the size of the fresh issue will be reduced accordingly. The proceeds from the fresh issue will be allocated as follows: Rs 2.02 billion for debt repayment and Rs 1.24 billion for purchasing equipment needed to expand the company's facility in Gautam Buddha Nagar, Uttar Pradesh. Hero Motors is a leading automotive technology company in India, specialising in designing, developing, manufacturing, and supplying advanced powertrain solutions to automotive OEMs in the United States, Europe, India, and the ASEAN region. The company offers both electric and non-electric powertrains for various vehicle categories, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles. Operating in two segments powertrain solutions and alloys and metallics Hero Motors has six manufacturing facilities across India, the United Kingdom, and Thailand. The company reported a revenue of Rs 10.64 billion from operations in the fiscal year 2024. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers for the IPO. (ET)

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?