Hero Motors gets Sebi nod to float ₹1,200 crore IPO; check key details here

Hero Motors aims to raise ₹1,200 crore through its maiden public issue, comprising a fresh issue of ₹800 crore and an offer for sale (OFS) of ₹400 crore

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Hero Motors IPO: The auto component manufacturer Hero Motors has received approval from the Securities and Exchange Board of India (Sebi) to proceed with an initial public offering (IPO), according to a filing with the markets regulator on Monday, September 15. 

 

The company aims to raise ₹1,200 crore through its maiden public issue. The mainline offering comprises a fresh issue of ₹800 crore and an offer for sale (OFS) of ₹400 crore. The ₹400 crore OFS will include ₹390 crore worth of shares offloaded by OP Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles.

 

According to the draft red herring prospectus (DRHP), the company has reserved not more than 50 per cent of the issue for qualified institutional buyers (QIBs), not less than 35 per cent for retail investors and not less than 15 per cent for non-institutional investors (NIIs).  

Here are the key details of Hero Motors IPO:

Hero Motors IPO objective

According to the DRHP, the company proposes to utilise ₹285 crore from the net fresh issue proceeds for repayment of debt availed by the company and ₹237 crore for purchasing equipment required for expansion in capacity of its Gautam Buddha Nagar, Uttar Pradesh facility. The remaining funds will be used for funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate expenses.

Hero Motors IPO registrar, lead manager

Kfin Technologies is the registrar of the issue. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers.   ALSO READ | Euro Pratik Sales IPO opens: Analysts recommend long-term buy; here's why

About Hero Motors

Hero Motors is engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN) regions. It is a fully integrated powertrain systems provider offering comprehensive solutions, including services for designing, prototyping, validating, developing, and delivering system-level and component-level powertrain solutions for both electric and non-electric powertrains. 

 

Hero Motors' offerings find application in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and electric vertical take-off and landing (eVTOL) categories. The company's global customers include BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport, HUMMINGBIRDEV Inc, HWA AG and leading global electric bicycle (e-bike) manufacturers and other mobility applications, such as aerospace purposes.

Hero Motors financial overview

For the nine-month period ended December 31, 2024, the company reported revenue from operations of ₹807.2 crore and profit after tax (PAT) of ₹22.39 crore. In FY24, the company posted a total revenue of ₹1,064.3 crore compared to ₹1,054.6 crore in the previous financial year (FY23). The company’s net profit stood at ₹17 crore, down 58 per cent from ₹40.5 crore in FY23.