Hero Motors Withdraws Rs 900 Crore IPO Plans

Hero Motors Ltd has withdrawn its Rs 900 crore IPO filing. The company initially aimed to raise Rs 500 crore through new equity and Rs 400 crore via an offer for sale. Proceeds were to fund debt payment and expansion. Reasons for the withdrawal remain undisclosed.

New Delhi, Oct 7 (PTI) — Hero Motors Ltd, an auto-components arm of the Hero Motors Company (HMC) Group, has pulled its Rs 900 crore IPO plans as per recent updates from the market regulator Sebi on Monday.

Initially, the company sought to generate Rs 500 crore through fresh equity issuance, coupled with an offer for sale worth Rs 400 crore. This sale involved shares from O P Munjal Holdings, Bhagyoday Investments, and Hero Cycles. The filing, made in August, aimed for regulatory approval from Sebi to launch the IPO. However, the company withdrew the draft red herring prospectus as of October 5, 2024, without providing any reasons.

Hero Motors planned to use the IPO proceeds for debt settlements and to invest in expanding its facility in Gautam Buddha Nagar, Uttar Pradesh. Known for manufacturing both electric and non-electric powertrains, the company operates in powertrain solutions and alloys and metallics segments, with facilities in India, the UK, and Thailand.

(With inputs from agencies.)