 "Hero Motors files draft papers for ₹1,200 cr IPO; looks to reduce debt")
Auto parts maker Hero Motors has filed for an initial public offering (IPO) of up to ₹1,200 crore ($140.1 million), draft papers showed on Tuesday.
The company will issue fresh shares worth up to ₹800 crore while its existing shareholders will sell shares worth up to ₹400 crore, the draft prospectus showed.
Hero Motors, which counts BMW and Ducati as its clients, is led by Pankaj Munjal, who belongs to the Munjal family that runs India's largest two-wheeler maker by volumes, Hero MotoCorp.
Proceeds from the IPO will be used to trim debt and fund purchase of equipment to expand its facility in Uttar Pradesh, Hero Motors said.
Its full financial year 2024 net profit fell 67 per cent on-year, as increased expenses overshadowed a near-1 per cent rise in revenue.
ICICI Securities, JM Financial and DAM Capital are the book running lead managers of the offering.