Hero Motors Increases IPO Size to Rs 1,200 Crore
Hero Motors, a leading auto components maker, has raised the issue size of its IPO to Rs 1,200 crore by refiling its Draft Red Herring Prospectus with SEBI. The IPO includes a mix of fresh issue and offer for sale, with proceeds aimed at debt reduction and facility expansion in Uttar Pradesh.
Auto components maker Hero Motors has refiled its Draft Red Herring Prospectus (DRHP) with markets regulator SEBI for an initial public offering (IPO), increasing the issue size from Rs 900 crore to Rs 1,200 crore. The IPO includes a fresh issue of up to Rs 800 Cr and an offer for sale up to Rs 400 Cr by promoters. The OFS includes shares worth Rs 390 crore by O P Munjal Holdings, and Rs 5 crore each by Bhagyoday Investments and Hero Cycles each, according to the DRHP.
Hero Motors, known for clients like BMW and Ducati, is led by Pankaj Munjal from the Munjal family that runs Hero MotoCorp, India’s largest two-wheeler manufacturer. Proceeds from the IPO will be used to reduce debt and expand its facility in Uttar Pradesh. A pre-IPO placement of Rs 160 crore is also being considered.
The IPO will allocate shares to qualified institutional buyers, non-institutional bidders, and retail individual investors. In FY24, Hero Motors generated revenue from powertrain solutions and alloys and metallics business segments. Geographically, revenue came from India, Europe, and the US. Revenue and gross profit have shown growth over the years.
ICICI Securities Limited, DAM Capital Advisors Limited, and JM Financial Limited are the book-running lead managers, and KFin Technologies Limited is the registrar to the offer.
According to the source: The Economic Times.
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