Hero Motors has refiled its draft red herring prospectus (DRHP) with the market regulator Securities and Exalter Board of India (SEBI) to mop up Rs 1,200 crore.
The South Asia Growth Invest-backed company will raise money through an Initial Public Offering (IPO). The offer includes two components fresh issue of up to Rs 800 crore and an offer for sale up to Rs 400 crore by promoters.
Hero Motors IPO: Objectives of raising funds
According to the company, the raised proceeds from the fresh issue will be applyd to the extent of Rs 285 crore for the payment of certain outstanding borrowings, while Rs 237 crore will be applyd for capital expconcludeiture through the purchase of equipment required for expansion in the capacity of its Gautam Buddha Nagar, Uttar Pradesh facility. Hero Motors will also apply the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
The company may consider a pre-IPO placement of Rs 160 crore in consultation with the book-running lead managers. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the issue and KFin Technologies is working as the registrar to the offer.
Hero Motors: Retail, NII, and QIB portion
Not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional acquireers (QIBs), and not less than 15% and 35% shall be available for allocation to non-institutional bidders (NIIs) and retail individual investors, respectively.
Hero Motors IPO: Promoters and other selling shareholders
The OFS has Rs 390 crore worth of shares by O P Munjal Holdings, and Rs 5 crore each by Bhagyoday Investments and Hero Cycles.
About Hero Motors
Hero Motors 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.
The company is one of India’s leading automotive technology companies, according to a CRISIL report. It 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) region.
As of December 2024, it operated six manufacturing facilities spread across India, the United Kingdom and Thailand that are strategically located to ensure proximity to customers and cost competitiveness.
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