Hero Motors Ltd Seeks Rs 900 Crore Through IPO

Hero Motors Ltd, an auto-components subsidiary of the Hero Motors Company (HMC) Group, has filed for a Rs 900 crore IPO with Sebi. The offering consists of a fresh issue worth Rs 500 crore and an Offer-For-Sale totaling Rs 400 crore by promoters. Funds will be utilized for debts and expansion.

Hero Motors Ltd, the auto-components subsidiary of the Hero Motors Company (HMC) Group, has officially filed preliminary documents with the Securities and Exchange Board of India (Sebi) to secure Rs 900 crore through an Initial Public Offering (IPO).

The proposed IPO will involve a fresh issuance of equity shares valued at Rs 500 crore and an Offer-For-Sale (OFS) amounting to Rs 400 crore by promoters, as detailed in the draft red herring prospectus (DRHP). The OFS will see Rs 250 crore worth of shares sold by O P Munjal Holdings and Rs 75 crore each by Bhagyoday Investments and Hero Cycles.

The company may also explore a pre-IPO placement of Rs 100 crore, which, if completed, will reduce the size of the fresh issue. From the fresh issue, Rs 202 crore will be directed towards debt repayment, while Rs 124 crore will fund the purchase of equipment needed for expanding the company's facility in Gautam Buddha Nagar, Uttar Pradesh. With six manufacturing facilities globally, Hero Motors is a leading provider of high-engineered powertrain solutions to automotive OEMs in regions like the United States, Europe, India, and ASEAN.

(With inputs from agencies.)