Hero Motors files draft papers with SEBI for Rs 1,200-cr IPO
Hero Motors has refiled draft papers with SEBI for a Rs 1200 crore IPO. The company is a leading Indian automotive technology company.
New Delhi: Hero Motors has filed draft papers with Securities and Exchange Board of India (Sebi) to raise Rs 1,200 crore through an initial public offering (IPO). The refiled draft papers mentioned that the IPO is a combination of a fresh issue of equity shares worth Rs 800 crore and an offer-for-sale (OFS) of shares worth Rs 400 crore by promoters.
Through the OFS route, OP Munjal Holdings will be selling shares worth Rs 390 crore, while Bhagyoday Investments and Hero Cycles will offload shares to the tune of Rs 5 crore each.
Hero Motors IPO Details
In its papers filed with the markets regulator, the company has mentioned that it will use the proceeds from the IPO to the extent of Rs 285 crore for payment of debt. It further informed that Rs 237 crore will be spent for buying equipment for capacity expansion at the company's facility in Uttar Pradesh’s Gautam Buddha Nagar district.
The company plans to use the remaining money collected from the initial public offer for funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes, the draft papers mentioned.
Hero Motors also plans to mobilise up to Rs 160 crore in pre-IPO round. If the plan sails through, the fresh issue size will be reduced to the extent of such amount.
In 2023-24, Hero Motors' revenue from operations was recorded at Rs 1,064.39 crore and profit after tax stood at Rs 17.04 crore.
Book-running lead managers of the Hero Motors IPO: DAM Capital Advisors, JM Financial and ICICI Securities.
It may be recalled that the auto parts maker has filed preliminary papers with Sebi in 2024 to raise Rs 900 crore through an initial share-sale. However, the company withdrew its draft documents in October.
Hero Motors is one the leading automotive technology companies in India. The firm is in the business of designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers.
The firm has its clients in India, the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN,) region.
Its customers include:
- Enviolo International Inc
- Formula Motorsport Ltd
- Hummingbird EV
- BMW AG
- Ducati Motor Holding SPA
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