Hero Motors refiles DRHP, raises IPO size to ₹1,200-cr; key details here

Hero Motors IPO: The IPO comprises a combination of fresh issue up to ₹800 crore and an OFS up to ₹400 crore by promoters

Hero Motors IPO: Auto components maker Hero Motors has refiled its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (Sebi) for its maiden public issue. The company has increased the issue size from ₹900 crore to ₹1,200 crore. In August last year, the company filed papers for a ₹900 crore IPO. 

 

The Hero Motors IPO with a face value of ₹10 per share comprises a combination of fresh issue up to ₹800 crore and an offer for sale (OFS) up to ₹400 crore by promoters. The OFS component includes ₹390 crore worth of shares by OP Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles, as per the DRHP.

 

According to the DRHP, not more than 50 per cent of the issue shall be reserved for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail individual investors.

Hero Motors IPO registrar, lead managers

Kfin Technologies is the registrar for the issue. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers of the issue. 

Hero Motors IPO objective

According to the DRHP, the company plans to utilise ₹285 crore from the net issue proceeds for repayment or prepayment or redemption of certain outstanding borrowings availed by itself and ₹237 crore for the purchase of equipment required for expansion in capacity of its facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining funds will be used for funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.   CHECK INDOGULF CROPSCIENCES IPO ALLOTMENT STATUS

Hero Motors financial snapshot

In the nine-month period ended December 31, 2024, the company reported revenue from operations of ₹807.2 crore and profit after tax of ₹22.39 crore. In the financial year 2023-24 (FY24), Hero Motors reported revenue from operations of ₹1,064.38 crore, marginally up from 1,054.6 crore in the previous financial year. The company's earnings before interest, tax, depreciation and amortisation came in at ₹82.8 crore in FY24 compared to ₹97.35 crore in the previous fiscal. Its profit after tax (PAT) stood at ₹17 crore, down around 58 per cent from 40.5 crore in the FY23.

About Hero Motors

Hero Motors is the automotive flagship company of the Hero Group which is one of the world’s largest two-wheeler and cycle manufacturers. The company offers comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level powertrain solutions for both electric as well as non-electric powertrains. Its operations are organised into Powertrain Solutions and Alloys and Metallics business segments. 

 

Pankaj Munjal, Charu Munjal, Abhishek Munjal and OP Munjal Holdings are the promoters of the company. As per the DRHP, the promoters currently own 91.65 per cent stake in the company.